The Pound to Canadian Dollar exchange rate has substantially reversed an earlier spectacular slump to all time lows from the opening session of the week but its recovery appeared to falter ahead of 1.50 and so the risk may be that its latest declines have opened up a new and lower trading range for Sterling.

The Pound to Canadian Dollar exchange rate has shown signs of stabilising of late but may now be on the cusp of lurch toward all-time lows if the author is right about how the market might be likely to respond to any exceptionally large interest rate rise from Bank of England (BoE) this Thursday.

The Pound to Canadian Dollar rate has had a torrid year thus far but there are both technical and fundamental indications that a turnaround may be in the pipeline, if not already underway, although much still rests on forthcoming Federal Reserve (Fed) and Bank of England (BoE) policy decisions.

The Pound to Canadian Dollar exchange rate rallied from 12-year lows early in the new week and could potentially advance further toward 1.53 in the days ahead if given the right combination of policies from the new UK government on Tuesday and the Bank of Canada (BoC) on Wednesday. 

The Pound to Canadian Dollar exchange rate fell to its lowest since June 2010 last week but would risk further losses that could pull it closer toward the 1.50 handle in the days ahead if North American currencies continue to outperform or if Sterling remains a relative laggard.

The Pound to Canadian Dollar rate reached its lowest level since April 2013 this week but could be at risk of falling as far as 1.50 in the weeks and months ahead without a meaningful improvement in the market's appetite for Sterling.

CAD is forecast to fall against the Pound from year-end through to the third quarter of 2023 as the economy enters recession, according to Desjardins Bank.

"It is difficult to see the light in the tunnel for GBP," says Swedbank.

Economists at NBC have updated clients with their latest Canadian Dollar forecasts.

The Pound to Canadian Dollar exchange rate rallied from August lows to open the new week but could climb further up ahead and as far as a short distance above the 1.58 handle if the Loonie builds on Monday’s declines in what will be a busy period for Canadian, UK and U.S. economic data.

The Pound to Canadian Dollar rate’s attempted escape from near 10-year lows was cut short last week when U.S. economic data conspired with the U.S. Dollar and a resilient Loonie to pull GBP/CAD back toward 1.55 and a level that could continue to exert a gravitational pull through the days ahead.

CAD is tipped to maintain that outperformance over coming weeks, but by year-end it should start retreating against GBP and EUR.

The Canadian Dollar fundamental value has risen, leading a BMO Capital Markets financial model to tip the Loonie as a buy this week, although the latest technical analysis from Scotiabank suggests USD/CAD is likely to trend sideways and that GBP/CAD may have scope to climb toward 1.58.

The Pound to Canadian Dollar exchange rate reached one month highs last week but may get an opportunity to advance closer toward the 1.57 handle in the days ahead if the U.S. Dollar remains soft or the Bank of England (BoE) surprises on the upside of market expectations this Thursday.

The Pound to Canadian Dollar exchange rate has shown signs of stabilising above the nearby 1.54 level but could continue to have difficulty sustaining rallies when near to the 1.56 handle if the Loonie and North American counterparts remain outperformers of other major currencies in the days ahead.

The Pound to Canadian Dollar exchange rate entered the new week on the front foot but could struggle to extend its early advance by much in the days ahead unless an action packed UK economic calendar is able to foment a further improvement in market appetite for Sterling. 

The Pound to Canadian Dollar exchange rate remains in the grip of gravity and could be at risk of probing beneath the 1.55 handle afresh in the week ahead if Wednesday’s Bank of Canada (BoC) policy decision provides the Loonie with inspiration for fresh gains over other currencies. 

The Pound to Canadian Dollar rate’s mid-June recovery has been all but scuppered and it now risks remaining suppressed near around 1.55 in the days ahead unless market appetite for the U.S. Dollar and other positively correlated currencies ebbs. 

Quebec based Desjardins Bank are forecasting a steady decline in the value of the Canadian Dollar through the remainder of 2022.

The Pound to Canadian Dollar exchange rate may be in the process of attempting to reverse a steep multi-month decline but it has so far been stymied by technical resistance around 1.5932 on the charts and may now be likely to consolidate its recent gains near the 1.58 handle in the week ahead