Exchange Rate Forecasts 2026-2027

Technical studies from Canadian lender Scotiabank suggest the Canadian Dollar is likely to lose further ground as a recent poor run extends.

A potential approach to the sterling-dollar exchange rate is provided by Shaun Osborne at Scotiabank who writes:

The GBP is little changed on the day but retains a soft undertone after the jittery trade earlier in the week.

The uncertain undertone may extend a little more, with the recent narrowing in the referendum opinion polls suggesting that “Leave” campaigning is starting to resonate with those voters who have remained on the fence so far.

The CIPS/Markit construction PMI for May was weaker than expected at 51.2 (the street was looking for 52.0).

The GBP has stabilised after losing some 3 cents since Tuesday but the “bounce” has been distinctly muted and short-term price action looks weakish with Cable gains capped around 1.4460/65 overnight.

Loss of short-term trend support at 1.4485 (now resistance) and the 40-day MA (1.4454) suggest near-term downside risks towards 1.43.

This April has seen the euro trade towards the upper end of its 14-month range against the dollar following an impressive 4% rally through March.