The Pound-to-Canadian Dollar rate rallied last week and was one of the better performing Sterling exchange rates but it could struggle to extend much beyond the 1.74 level over the coming days and may be most likely to range-trade between there and the 1.73 handle.
The Canadian Dollar remained a laggard among major currencies for the week on Friday even rallying in the latter half when an optimistic Bank of Canada (BoC) left its interest rate unchanged following a decision that has further divided analyst opinion on the outlook for the Loonie.
The Pound-to-Canadian Dollar exchange rate tumbled on Wednesday after the Bank of Canada (BoC) stayed its earlier established course by leaving the cash rate unchanged following its latest meeting, surprising some parts of the market, and continuing its commitment to quantitative easing.
The Canadian Dollar was an outperformer among major currencies for the session as well as week on Thursday as it continued to overlook the elevated possibility of an interest rate cut or other policy action from the Bank of Canada (BoC) next Wednesday.
The Pound-to-Canadian Dollar rate rallied strongly on Tuesday after Bank of England (BoE) Governor Andrew Bailey appeared to poor cold water over the idea of the UK adopting a negative interest rate policy, although upside for Sterling could be limited to nearby levels, analysts have suggested.
The Pound-to-Canadian Dollar exchange rate turned away from near a year-long high last week and could be set to trade within a narrower and lower range over the coming days as a rally in U.S. government bond yields asks uncomfortable questions of investors in stock and commodity markets.