The British Pound (GBP) experienced a steady climb against the Canadian Dollar (CAD) last week, with the exchange rate jumping to 1.8 as market dynamics shifted following geopolitical developments.
GBP/CAD Update: Pound Gains Strength on Tariff Impact
The GBP/CAD exchange rate recently surged to 1.81 before settling around CA$1.8079, reflecting a -0.30% dip from Sunday’s close. Market volatility increased following the latest round of US tariffs impacting Mexico, Canada, and China.
Canadian Dollar (CAD) Holds Firm Despite BoC Rate Cut
The Canadian Dollar managed to remain resilient for much of the week despite the Bank of Canada (BoC) cutting interest rates from 3.25% to 3.0% in January. While this move was in line with market expectations, the ‘Loonie’ showed stability, resisting significant losses until the end of the week when new tariff threats from the US prompted a downturn in CAD exchange rates.
Pound Sterling (GBP) Seeks Direction Amid Data Scarcity
Sterling traded within a narrow range at the beginning of the week due to a lack of impactful UK economic data. The ongoing data shortage, coupled with risk-averse market sentiment, kept the Pound struggling to gain momentum.
However, by midweek, GBP managed slight gains, driven by UK Chancellor Rachel Reeves’ economic policy speech, which provided a degree of optimism regarding the UK’s financial outlook. Still, the absence of strong domestic economic indicators kept the currency’s trajectory uncertain.
GBP/CAD Forecast: BoE Rate Decision & Canadian Economic Data in Focus
Looking ahead, the GBP/CAD exchange rate will likely be influenced by the upcoming Bank of England (BoE) interest rate meeting. Analysts anticipate a 25-basis-point rate cut on Thursday, which could weigh on the Pound in the latter half of the week.
On the Canadian side, key economic releases—including trade balance data, Ivey PMIs, and labor market reports—are expected to drive CAD movement. Any surprises in these reports could inject fresh volatility into the currency pair.
Key SEO Keywords: Pound to Canadian Dollar, GBP/CAD exchange rate, BoC interest rate cut, Bank of England rate decision, Canadian Dollar forecast, UK economic data, US tariffs impact, forex market analysis.
