The Pound-Canadian Dollar rate was little changed last week after more sideways trading that spanned both risk-off and risk-on market conditions, although it remains well supported by a cluster of nearby moving-averages on the charts and is tipped by technical analysts to retain an upside bias in the weeks ahead.
The Pound was treading water against a resilient Canadian Dollar Friday but will soon return to its 2020 high against the Loonie, according to the latest CIBC Capital Markets forecasts, as historic lows in some oil markets heap more pressure onto the Canadian economy and currency.
One exchange rate that is becoming incredibly interesting - at least for those who are stimulated by FX markets - is GBP/CAD, which appears to be defying all the volatility and noise that has descended on the wide financial market place.
The Canadian Dollar outperformed risky counterparts Tuesday despite ongoing turmoil in the oil futures market, suggesting the Loonie may already be discounting the crude calamity although analysts say that upside is limited for now and that downside risks will abound at least until summer.
The Pound-Canadian Dollar rate rose nearly one percent last week but was rejected by the top of its multi-year range in the process and may now be poised for a fresh period of sideways consolidation over the coming days.
The Pound-Canadian Dollar rate was on course to test the top of a multi-month range Wednesday after the Bank of Canada (BoC) expanded its maiden quantitative easing programme and said that it will buy nearly half of all government treasury bills sold at auction from here in what could amount to partial 'monetisation' of the budget deficit.
The Canadian Dollar has come under fresh pressure in mid-week trade amidst a souring of investor sentiment, which appears to be sparked by a decline in oil prices which are falling amidst a sharp slump in global economic activity.