Pound to Canadian Dollar Forecast: 1.7064 in Three Months

GBP/CAD technicals suggest further upside.

The Canadian Dollar is forecast to see further near-term weakness against the Pound, Dollar and Euro but a strong recovery through 2023 is predicted by NBC.

The Pound to Canadian Dollar rate has reached four-month highs in recent trade but multiple technical resistances are obstructing its path higher on the charts and Thursday's Bank of England (BoE) interest rate decision is posing risks that could further frustrate its recovery in the days and weeks ahead.

The Pound to Canadian Dollar exchange rate climbed back toward two-month highs early in the new week but could have difficulty extending its recovery much further in the days ahead unless this Wednesday's Bank of Canada (BoC) interest rate decision leads to a surprise upset for the Loonie.

The Pound to Canadian Dollar exchange rate's rally into the October month has given way to a corrective setback in recent days but Sterling found support just above the 1.51 handle early in the new week and could now be likely to consolidate its recovery for a short period.

Global Reach Group have released their latest pack of key Pound Sterling forecasts covering the remainder of 2022 and the first three quarters of 2023.

The Pound to Canadian Dollar exchange rate has surged to six-week highs in recent trading but could climb further in the short-term and potentially above the 1.56 handle for a time, although the rally underway is not without setback risks and these could intensify as the new month unfolds.

The Pound to Canadian Dollar exchange rate has substantially reversed an earlier spectacular slump to all time lows from the opening session of the week but its recovery appeared to falter ahead of 1.50 and so the risk may be that its latest declines have opened up a new and lower trading range for Sterling.

The Pound to Canadian Dollar exchange rate has shown signs of stabilising of late but may now be on the cusp of lurch toward all-time lows if the author is right about how the market might be likely to respond to any exceptionally large interest rate rise from Bank of England (BoE) this Thursday.

The Pound to Canadian Dollar rate has had a torrid year thus far but there are both technical and fundamental indications that a turnaround may be in the pipeline, if not already underway, although much still rests on forthcoming Federal Reserve (Fed) and Bank of England (BoE) policy decisions.

The Pound to Canadian Dollar exchange rate rallied from 12-year lows early in the new week and could potentially advance further toward 1.53 in the days ahead if given the right combination of policies from the new UK government on Tuesday and the Bank of Canada (BoC) on Wednesday. 

The Pound to Canadian Dollar exchange rate fell to its lowest since June 2010 last week but would risk further losses that could pull it closer toward the 1.50 handle in the days ahead if North American currencies continue to outperform or if Sterling remains a relative laggard.

The Pound to Canadian Dollar rate reached its lowest level since April 2013 this week but could be at risk of falling as far as 1.50 in the weeks and months ahead without a meaningful improvement in the market's appetite for Sterling.

CAD is forecast to fall against the Pound from year-end through to the third quarter of 2023 as the economy enters recession, according to Desjardins Bank.

"It is difficult to see the light in the tunnel for GBP," says Swedbank.

Economists at NBC have updated clients with their latest Canadian Dollar forecasts.

The Pound to Canadian Dollar exchange rate rallied from August lows to open the new week but could climb further up ahead and as far as a short distance above the 1.58 handle if the Loonie builds on Monday’s declines in what will be a busy period for Canadian, UK and U.S. economic data.

The Pound to Canadian Dollar rate’s attempted escape from near 10-year lows was cut short last week when U.S. economic data conspired with the U.S. Dollar and a resilient Loonie to pull GBP/CAD back toward 1.55 and a level that could continue to exert a gravitational pull through the days ahead.

CAD is tipped to maintain that outperformance over coming weeks, but by year-end it should start retreating against GBP and EUR.

The Canadian Dollar fundamental value has risen, leading a BMO Capital Markets financial model to tip the Loonie as a buy this week, although the latest technical analysis from Scotiabank suggests USD/CAD is likely to trend sideways and that GBP/CAD may have scope to climb toward 1.58.