canadian-dollar-coins - CAD

GBP/CAD is surging on Monday amid increasing fears that the new virus outbreak in China could hurt the global economy. The pair is currently trading at 1.7262, up 0.40% as of 9:44 AM UTC.

Given that the Canadian economy is an oil-dependent country, the Loonie is declining on weakening oil prices, which have extended their declines on Monday. Brent fell below the $60 mark for the first time in about three months on news that the death toll from coronavirus in rapidly increasing in China. Several businesses were forced to halt their operations.

Brent oil declined by 2.95% to $58.90, the lowest since later October. WTI oil fell 3% to $52.55.

Earlier today, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al-Saud stated that OPEC and allied oil-producing countries led by Russia could try to boost the prices in response to demand changes. The Saudi official said that he was watching the situation in China and hoped that the outbreak would be addressed accordingly. The minister said that markets are:

Primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite (the virus’) very limited impact on global oil demand.”

The virus outbreak in China has already killed 81 people. The new strain of the coronavirus has spread to many countries, including the US, Australia, and Europe. Nevertheless, analysts say it’s too early to assess the potential impact on consumers and businesses.

Elsewhere, the sterling is gaining momentum after industry group UK Finance said that British banks approved the highest number of mortgages in over four years last month. Mortgage approvals rose to 46,815 in December, which is the most since August 2015.

Howard Archer, an economist at EY ITEM Club, said:

“December’s jump in mortgage approvals adds to a growing amount of firmer data and survey evidence suggesting that the housing market could well be changing up a gear after a lacklustre 2019.”

Later this week, the Bank of England will meet to decide the interest rate. While most policymakers said they were inclined to cut the rate, recent positive data might convince the central bank to make no changes for now. 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.