What are CAD to GBP forecasts?
The CAD to GBP exchange rate has seen some fluctuations recently, as various factors influenced the respective currencies. The Canadian Dollar (CAD) experienced a wobble due to weaker oil prices being offset by an uptick in USD, while CAD is positively correlated. Economists are looking forward to the upcoming Canadian PPI data release from April, as an uptick in producer prices may stoke speculation that the Bank of Canada (BoC) could consider tightening its monetary policy again.
On the other hand, the British Pound (GBP) started strong in May, reaching an 11-month high. The upward trend could be maintained barring any unexpected developments surrounding inflation and Bank of England monetary decisions. Currently, the CAD to GBP rate remains just 0.5% below its 3-month average of 0.5971, trading within a 5.7% range. FX analysts predict that the GBP's performance may continue to be affected by the ongoing Brexit negotiations and uncertainty surrounding the economic impact of the UK's departure from the EU. Also, the GBP/USD is known for its high volatility due to factors like economic data releases, political events, and changes in central bank policy, which may influence the CADGBP exchange rate.