The British Pound starts the new week half a percent higher against the Canadian Dollar amidst a broad rally in the UK currency, but it faces an uphill slog if it is to recover the losses it has suffered against its Canadian counterpart since late February.
The Canadian Dollar rose against all major currencies on Friday, keeping it at the top of the table for 2021, after an earlier corrective dip was bought and with the Loonie later aided in its upward endeavour by a strong March employment report from Statistics Canada.
The Canadian Dollar outperformed other major currencies on Wednesday and remained leader of the pack for 2021 after Statistics Canada data showed the economy gaining momentum in January despite a second wave of coronavirus infections and associated restrictions on activity.
The Canadian Dollar is 2021's top performing currency, but a number of foreign exchange analysts we follow are now of the view the currency's outperformance is at risk of fading as new lockdowns pose an unexpected challenge to the country's economic recovery.
The Pound-to-Canadian Dollar rate was near the top of its recent range on Tuesday but would struggle to extend above it ahead of Canada's latest employment report due out on Friday, which could impact market expectations for this month's Bank of Canada (BoC) monetary policy decision.