Forecasts for CAD to GBP
The current exchange rate for CAD to GBP is holding near 14-day lows at approximately 0.5384, which is about 0.9% lower than its three-month average of 0.5436. Analysts note that CAD has been relatively stable, trading within a 4.6% range from 0.5347 to 0.5591, largely influenced by fluctuations in oil prices. As Canada is a significant oil exporter, the CAD's value is closely linked to movements in the oil market. Recently, oil prices have dipped to about 65.52, representing a 4.5% decline from their three-month average of 68.63 and subject to a highly volatile trading range of 60.14 to 76.54. This stalling of oil prices has restricted the 'loonie's' momentum, leaving it without clear direction.
On the GBP front, the currency has experienced marginal declines following some profit-taking after recent gains tied to GDP data. The imposition of a 10% tariff on goods from the UK by U.S. President Donald Trump has raised concerns among investors regarding the implications for UK trade relations. GBP responses around key political events, such as the upcoming UK-EU summit, have been cautious, with traders wary of any limited progress towards new trading agreements, which may further impact the currency's outlook.
Market experts forecast that the CAD will continue to be swayed by oil price movements alongside the impact of U.S.-Canada trade relations. With the Bank of Canada’s monetary policy being a significant factor, any decisions on interest rates will play a crucial role in shaping the CAD's future. Meanwhile, the GBP's trajectory seems increasingly reliant on the outcome of upcoming political discussions and the economic recovery in the UK, particularly as it navigates its post-Brexit landscape. Overall, both the CAD and GBP face challenges that could define their respective strengths against each other in the near term.
