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Will the Pound Recover Against the Canadian Dollar?

2024-11-18 14:42:14.442000

The Pound Canadian Dollar (GBP/CAD) exchange rate has recently experienced fluctuations, with a notable decline of 1.0% in November. This downturn is attributed to the Canadian Dollar's (CAD) outperformance, which analysts link to Donald Trump's recent U.S. election victory, suggesting that the CAD may benefit from anticipated higher U.S. growth. Currently, the GBP/CAD exchange rate is around 1.7614, with technical analysis indicating a potential bearish trend. Key support levels have been identified at 1.7748 and 1.7696, suggesting that the market is closely monitoring these thresholds for further movements. [d87eed38]

In addition to these developments, upcoming economic data is expected to play a crucial role in shaping the exchange rate. Canadian inflation data is set to be released on November 19, with CIBC forecasting a monthly increase of 0.2%, which is below consensus expectations. Meanwhile, UK inflation is anticipated to rise to 2.2% year-on-year, prompting speculation that the Bank of England may consider rate cuts if the inflation data comes in weak. [d87eed38]

The recent budget impacts on the UK retail and hospitality sectors have also been noted, adding another layer of complexity to the economic landscape. As the market navigates these developments, analysts warn of a potential GBP/CAD recovery amidst stretched USD strength, highlighting the importance of the upcoming inflation reports in determining the trajectory of the GBP/CAD exchange rate. [d87eed38]

Overall, while the Pound has faced challenges against the Canadian Dollar, the evolving economic indicators and political developments may open the door for a recovery in the week ahead. [d87eed38]

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.