The Canadian Dollar softened with inflation on Wednesday, as markets responded to official data published by Statistics Canada, although the Loonie retains its seemingly unassailable grip on the top spot in the G10 league table and is expected to advance further against the Pound this week.
The Pound could see its downside momentum against the Canadian Dollar continue to fade over the short-term, but we are wary that the overarching negative trend of recent weeks could restart at any point.
The Canadian Dollar built further on recent strong gains Friday and could yet rise another four percent throughout the summer months, according to strategists at Societe Generale, but analysts at some other firms see the Loonie as risking heaping its own funeral pyre.
The Canadian Dollar rose again Thursday and is on course for further gains in the weeks and months ahead according to analysts at MUFG, although this strength combined with an shaky global economic backdrop are expected to force the Bank of Canada (BoC) into an interest rate cut before the year is out.
The Canadian Dollar was left reeling Wednesday after the Bank of Canada (BoC) dismissed recent economic strength as a temporary phenomenon and appeared to suggest it believes that Canada is unlikely to escape the slowdown plaguing the rest of the world.
The Pound-to-Canadian-Dollar rate fell close to a two-year low amid broad weakness in Sterling exchange rates Tuesday but analysts at TD Securities are tipping the British currency for a rebound on Wednesday, which will see both UK GDP data and the latest interest rate decision from the Bank of Canada (BoC) hit the market.
The Canadian Dollar has been tipped as a buy at RBC Capital Markets ahead of the July Bank of Canada (BoC) interest rate decision, which is due on Wednesday, although analysts at some other firms are growing more cautious in their outlook for the Loonie in the short-term.
The Pound-to-Canadian-Dollar rate was trading around 1.6378 Monday after falling more than a full percentage point in the previous week and studies of the charts are suggesting the bear trend is likely to continue over the next few days.