The Canadian Dollar was left jilted on Friday by a Bank of Canada (BoC) decision to cut the cash rate to the "effective lower bound" and to launch a quantitative easing program that will see it buy almost one percent of local government debt each week, which has aided a Pound-to-Canadian Dollar rate recovery off 2020 lows.
The Pound-to-Canadian Dollar rate was stabilising around a key level on the charts Tuesday even after the UK entered its first day of a so-called 'lockdown,' although it might need the improved mood music in the market to endure in order to avoid fresh losses over the coming days.
The Canadian Dollar is being tipped to experience further weakness by analysts at a global investment bank, who say the hit to oil prices and further action at the Bank of Canada are two reasons to retain a bearish slant on the currency.
asThe Canadian Dollar was firmer on Thursday as investors cheered actions by the government and central bank cavalry that have calmed flighty risk markets overnight although the Loonie risks falling to levels not seen since after the turn of the new millennium over the coming weeks, according to some analysts.
The Pound-to-Canadian Dollar rate closed its worst week since the October 2016 Sterling flash-crash on Friday after suffering a near-3% loss but it was finding support on the charts Sunday and could go on to recover somewhat over the coming days.
The Pound-to-Canadian Dollar rate retreated from its highest levels since 2018 Tuesday amid a rebound in oil prices although the coronavirus threat to the global economy and prospect of a months-long oil price war between Saudi Arabia and Russia could help the exchange rate retain an upside bias in the weeks ahead.