The Pound to Canadian Dollar (GBP/CAD) exchange rate moved higher on Thursday as Sterling gained modest support despite cautious central bank messaging, while the ‘Loonie’ softened.
At the time of writing, GBP/CAD was trading near CA$1.8477, up around 0.2% on the day.
Pound to Canadian Dollar (GBP/CAD): 1.84748 (+0.01%)
Euro to Canadian Dollar (EUR/CAD): 1.59348 (+0.04%)
Dollar to Canadian Dollar (USD/CAD): 1.35812 (+0.01%)
DAILY RECAP:
The Pound (GBP) firmed on Thursday as markets digested the Bank of England’s (BoE) latest interest rate decision.
While policymakers left rates unchanged, one member voted for a hike and the bank maintained a firm tone on inflation risks, suggesting further tightening could still be considered.
However, guidance stopped short of strongly signalling imminent action, limiting the scale of Sterling’s gains.
The Pound also found support from an improvement in overall market sentiment, benefiting from its increasingly risk-sensitive profile.
Meanwhile, the Canadian Dollar (CAD) came under pressure as oil prices lost momentum.
After climbing in previous sessions on fears of supply disruption in the Middle East, crude prices struggled to extend gains and began to retreat, dragging on the commodity-linked ‘Loonie’.
GBP/CAD Forecast: Oil Prices in Focus
Looking ahead, a lack of major economic data releases may leave GBP/CAD primarily driven by external factors.
Oil price movements are likely to remain a key influence, with further volatility potentially shaping direction in the Canadian Dollar.
Developments in the Middle East will continue to be closely monitored, as any escalation could push oil higher and support CAD, while easing tensions may weigh on the currency.
