GBP/USD: Pound Traders Look Ahead To First Conservative Leader Vote

GBP/CAD is sticking to the bullish stance in early trading on Thursday. The pair is currently trading at 1.7277, up 0.11% as of 08:10 AM UTC.

Yesterday, the price surged 1.29%, which was the biggest daily gain since October 10 of last year.

The Bank of Canada (BoC) left the interest rates unchanged yesterday, in line with analysts’ expectations. However, the central bank hinted to an upcoming rate cut if the recent slowdown in the economic growth persists. Some investors are pricing in a potential rate cut as soon as this spring.

The BoC has resisted the pressure from the US Fed, the European Central Bank, and other major central banks, which cut their rates several times last year, implementing stimulus measures to support their economies.

However, BoC Governor Stephen Poloz said that the door was open to a rate cut.

But it hinges on how the data evolve from here,” he added.

Economists doubled their bets on the chance of a rate cut by April from 20% to 40%.

The BoC reduced its annual growth outlook for the fourth quarter to 0.3% from 1.3% in October. The forecast for the first quarter this year was pegged at 1.3%.

Royce Mendes, Chief Economist at CIBC Capital Markets, commented:

“[The BoC] is leaving open the possibility that the economy surprises to the downside. There’s very little margin for error in that Bank of Canada base case forecast and they appear to have at least opened the door to a possibility of rate cut in the spring.”

Shortly before the BoC’s interest rate decision, Statistics Canada said that wholesale trade, which is an essential contributor to the monthly GDP performance, declined 1.2% in November. Analysts expected a slight monthly decline of only 0.3%.

Also, Canada’s consumer prices index (CPI) maintained steady at 2.2% last month, supported by an increase in energy prices, which rose 5.5% year-on-year. However, the core inflation declined more than expected.

The pound surged against its Canadian counterpart also because of positive data at home. The Confederation of British Industry said that optimism in UK factories rose to the highest level in 6 years. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.