The CAD to GBP exchange rate is currently range-bound, reflecting the effects of stable oil prices and central bank policies.
Key drivers include the interest rate differential, as the Bank of Canada maintains its rate at 2.25%, while the Bank of England hints at potential future rate cuts amidst slowing inflation projections. Additionally, Canada's robust jobs report reflects stronger economic growth, which supports the CAD.
In the near term, the Canadian dollar is expected to trade within a stable range as it remains only slightly above its three-month average. Oil prices are edging lower, currently trading below their three-month average, which could weigh on the CAD if the trend continues.
An upside risk could emerge from a rebound in oil prices, boosting the CAD's appeal. Conversely, a quicker-than-expected easing of monetary policy by the BoE could strengthen the GBP, leading to downward pressure on the CAD-GBP rate.