The Pound to Canadian dollar exchange rate has consolidated its second quarter gains but it remains biased to the upside and the author’s model suggests it could trade buoyantly in a 1.7429 to 1.7550 range this week.
The Canadian Dollar edged higher against the US Dollar and Pound on Friday after Statistics Canada data cast the local labour market in a resilient light for July, easing market concerns about the jobs outlook.
Traders should buy dips in USD/CAD because the Canadian dollar is likely to underperform as the US economy heads for a soft landing and the Federal Reserve begins to cut interest rates, according to Barclays research.
The Pound to Canadian dollar exchange rate receded further from recent multi-year highs last week but the author’s model suggests it should remain well supported above 1.7660 over the coming days, and that it could have scope to retest the 1.78 handle in some circumstances.