Pound to Canadian Dollar Forecast: 1.7618 in Three Months

New forecasts show a steady decline awaits the Canadian Dollar against the U.S. Dollar, Euro and British Pound.

The Pound to Canadian Dollar exchange rate has appeared to halt a fortnight run of losses in recent trade and opened the new month with a spring in its step but the outlook for GBP/CAD from here now hinges heavily upon whether there is a second successive distress signal from Canada's labour market this Friday.

The Pound to Canadian Dollar exchange rate headed for its June lows early in the new week where it would be retesting the technical support underpinning the recovery from last year's historic trough but whether the 1.6673 holds up through the week ahead hinges as much on the Loonie as it does the underperforming Pound.

The Canadian dollar can continue its recovery against the Pound and U.S. Dollar according to new research from global investment bank Commerzbank, which also shows a more determined advance against the Euro for 2024.

The Pound to Canadian Dollar exchange rate receded further from June highs to open the new week and potentially needs a big Bank of England (BoE) Bank Rate surprise on Thursday if it's to avoid falling back toward earlier lows around 1.6648 up ahead.

The Canadian Dollar is one of the better-performing of the major currencies of the past six weeks, but economists at a global investment bank say the currency will likely struggle over the remainder of 2023.

The Pound to Canadian Dollar exchange rate fell to its lowest since the middle of April early in the new week but could recover its losses if the Bank of Canada (BoC) elects to wait and see about the evolution of the local economy rather than to begin raising its cash rate again this Wednesday.

The Pound to Canadian Dollar exchange rate set itself on course for a fourth consecutive run of losses early in the new week but could fall as far as the round number of 1.65 in the days ahead if Sterling has further difficulty navigating an approaching minefield of domestic economic risk.

The Pound to Canadian Dollar exchange rate entered the new week near its May low and with risk tilted to the downside going into the release of important economic figures in both the UK and Canada, which could potentially see GBP/CAD slipping back to or below 1.68 in the days ahead. 

The Canadian Dollar should trend stronger against the Euro and British Pound into year-end while remaining range-bound against the U.S. Dollar as Canada benefits from a strong banking sector and elevated immigration.

The Pound to Canadian Dollar exchange rate has receded from 15-month highs in recent trade and while it could yet find its feet again ahead of Thursday's Bank of England (BoE) decision, its shifting correlation with USD/CAD and related factors make for a more uncertain outlook than usual.

The Pound to Canadian Dollar exchange rate has fully reversed its 2022 losses with a breakout above important technical resistance on the charts but with momentum now dissipating it could be most likely to consolidate within a rough 1.6814 to 1.7075 range over the coming days.

The Pound to Canadian Dollar exchange rate entered the new week retesting its recent highs and there may be a risk of it edging above 1.69 if the recent trend persists through the days ahead but Canada's February GDP data is a potential pitfall for Sterling.

GBP/CAD is running at levels far ahead of where it should be according to new research from a prominent Canadian bank.

The Pound to Canadian Dollar exchange rate has attempted to draw a line under its April loss with the help of an underperforming Canadian Dollar and a buoyant market for Sterling, which could keep GBP/CAD supported in the 1.65 to 1.66 area over the coming days.

The Canadian Dollar can strengthen in the short- and medium-term say foreign exchange analysts at Bank of America as they eye a 'hawkish' hold by the Bank of Canada midweek.

"In terms of alpha-generation – we like being short GBP/CAD from here" - CIBC.

The Pound to Canadian Dollar exchange rate remains close to one-year highs but with resistance immediately overhead on the charts the risk is of it being confined to roughly a 1.6768 to 1.6849 range over the coming days.

The Pound to Canadian Dollar exchange rate has eroded an important technical resistance on the charts to reach three-month highs early in the new week but could rise further up ahead if the Bank of England (BoE) surprises market expectations by lifting Bank Rate again on Thursday.