Forecasts for CAD to GBP
The exchange rate for CAD to GBP has recently seen a decline, with current trading levels around 0.5550, which is 1.1% below the 3-month average of 0.5614 and at 7-day lows. FX analysts note that the Canadian dollar (CAD) appears muted despite positive employment data, suggesting a lack of robust support for the currency. This situation is compounded by the ongoing slide in global oil prices, with the price of Brent Crude oil currently at $75.26—2.7% below the average of the last three months. As oil is a crucial export for Canada, further declines in prices could hinder the CAD’s strength against the GBP in the coming days.
Conversely, the British pound (GBP) has gained traction due to a rebound in UK GDP, alleviating some fears of economic slowdown. Recent data indicates that the UK economy expanded for the first time since May, bolstering investor confidence. Additionally, potential support for the GBP may come from the monetary policy outlook of the Bank of England, with discussions surrounding a possible rate cut set to be examined in the lead-up to November. With sterling trading on a relatively stable path against major currencies like the USD and EUR, analysts suggest that the GBP may maintain a favorable position against the CAD if the current economic trends continue. However, any dovish sentiments expressed by the Bank of England could temper such gains, underscoring the volatility that characterizes both currencies in the current market.
