CAD/GBP Outlook:
The CAD/GBP rate is likely to increase as it is currently over 1.5% above its recent average and trading at 90-day highs. Strong oil prices are supporting the Canadian dollar against the British pound.
Key drivers:
• Rate gap: The Bank of Canada maintains a tighter monetary policy compared to the Bank of England, supporting the CAD.
• Risk/commodities: Oil prices are soaring, reaching 90-day highs, which boosts the CAD due to Canada's status as a major oil exporter.
• One macro factor: The UK’s final services PMI may provide additional support for the GBP if it shows robust growth, balancing the CAD's oil strength.
Range:
The CAD/GBP rate is likely to hold steady within its recent range, potentially testing the upper end.
What could change it:
• Upside risk: A further increase in oil prices could support the CAD even more.
• Downside risk: A disappointing Canadian services PMI report could pressure the CAD.
🇨🇦🇬🇧 CAD/GBP Forecasts - End of 2026
🏦 Scotiabank
• Target: ~0.58–0.60
• Theme: UK rate path vs oil-driven CAD dynamics.