Economists at one of the largest lenders and financial services provider in North America have updated their forecasts for the Canadian Dollar, finding that the currency will gain over the Dollar but will likely be locked around the 1.70-1.72 range against the Pound for the foreseeable future.

The Pound-to-Canadian Dollar rate entered the new week with Sterling and the Loonie still vying with each other over the top spot among major currencies for 2021 but could potentially reach its highest since late April over the coming days if USD/CAD continues its correction higher.

The Canadian Dollar is tipped to trade consistently below a key level against the U.S. Dollar in the second half of 2021 as the Bank of Canada continues to offer a supportive impulse.

National Bank of Canada says further Canadian Dollar strength lies ahead and the currency is likely to take value off the Dollar, Euro and Pound over coming weeks as a result.

The Canadian Dollar was on its back foot Friday having ceded ground to the U.S. Dollar, Pound and a small majority of its other major rivals but forecasts from BofA Global Research suggest it has scope for one last huurah in the months ahead before fundamental forces demand an adjustment lower for the Loonie. 

The Bank of Canada Kept rates at 0.50% at its rate meeting today.