Canadian Dollar Forecast to Maintain Advantage Against the Pound this Week

The Pound rose against the Canadian Dollar (Loonie) at the end of last week reversing the downtrend temporarily but the overall trend remains bearish as we look ahead to the new trading week.

The Pound rose against the Canadian Dollar (Loonie) at the end of the week after the release of disappointing inflation data weighed on hopes the Bank of Canada (BOC) would start raising interest rates.

The collapse in the price of crude oil has weakened the Canadian Dollar against many currencies, but not against the Pound which is even weaker.

The Canadian Dollar is benefiting from a positive assessment from the Bank of Canada, and assuming data continues to be positive in the week ahead will probably have the upper hand over politically risk sensitive Sterling.

The Canadian Dollar could be at risk of falling against the Pound Sterling over the near-term. Read more ...

The Pound to Canadian Dollar has declined steeply from highs of 1.78 in May to the current level in the 1.68s, however, now it has paused to consolidate before its next move.

Despite making gains across the board, the British Pound has struggled against the Canadian Dollar which was boosted by a shift in tone at the Bank of Canada.

The Pound to Canadian Dollar sold off steeply after an inconclusive election result weighed on the Pound.