GBPCAD Forecast highlights:
- GBPCAD maintains strength into 1.85 to extend bull trend
- C$ under consistent pressure due to adverse market factors
- Aim to buy Sterling on modest CAD rallies near 1.80
How has GBPCAD performed recently?
Sterling is enjoying a small but persistent revival since February. Its newfound strength is found across many currency pairs, including GBPCAD.
This rate was caged in a consolidation range until a bullish breakout forced through the ceiling at 1.820. Prices quickly rose to multi-year highs of 1.87 before slipping into a consolidation. Soon after, the rate rebounded back to this resistance.
These price action generally affirmed GBPCAD’s multi-year uptrend, a trend that began in late 2022 shortly after PM Truss resigned.
But what exactly is propelling the rate higher? Exchange rate movements rely on a relative comparison of outlook. While GBP’s economic prognosis is neutral, perhaps Canada’s is more downbeat. The commodity upswing has turned down in 2023.
Whatever the reason, the trend here is bullish for GBP. Over the medium term, we may even see prices reaching for 1.900, a level last traded nearly a decade ago.
Is it a good time to buy GBP with CAD?
The value of Canadian Dollars has been depreciating since 2023. Two years ago, C$1.65 was required to buy one Pound Sterling. Now, it takes more than $1.85.
While the rate is long-term bearish, from time to time CAD may flash some strength. We would not rule out a short-term decline to 1.82-1.83.
When that happens, buy some GBPs. For now, acquire whatever Sterling you need in the near term, and wait and see if better exchange rates will emerge.
The risk, of course, is that prices may continue to trend upwards from here.
Will CAD get stronger against GBP in 2025?
Whether the Canadian Dollar can rebound from here depends on the market outlook. There are two factors that I would like to draw the readers’ attention to. First, rates. Two, commodity prices.
On the first factor, note that the rate differential between UK and Canada is wide. After their latest monetary meetings in June, the UK Base Rate stands at 4.25 percent (see below) while the Canadian policy rate is maintained at 2.75 percent. A not-so-small difference of 1.50 percent.
According to observations from international finance, capital normally flows to the countries with higher interest rates, since interest gains are higher (assuming both ends are developed countries.) Could this be one factor that is pushing GBP higher against that of CAD? Probably. Since GBP’s strength only persist after the Bank of England kept hiking interest rates throughout 2023.
Source: Yardeni.com
The second point concerns commodity. Right now, the market is not exactly booming. Look at the DB Commodity ETF (US:DBC). Prices dipped to multi-year lows a few weeks back. A neutral-negative outlook on a market in which Canada depends heavily on will cap the upside of its currency.
Lastly, the ongoing tariffs war with America – Canada’s largest trading partner – will hit economic growth.
Until all the factors mentioned above reverse, the C$ may continue to suffer from modest selling.
What is the GBPCAD forecast in weeks?
Many brokers are expecting GBPCAD to resume its the rally later this year. The general (median) trend of these forecasts extend slightly higher.
But the rate will not move in a straight line. Perhaps it will bounce up and down the 1.80-1.90 range for some time before moving higher.
You can trace this line of thought with the variability of the forecasts (red/green) over time.
Source: ExchangeRates.org.uk
Where is the best place for buying large amounts of GBP from Canadian Dollars
There are two different ways people buy GBP from Canadian dollars:
- Through a currency broker – when transferring money abroad
- Through a forex broker – when speculating on the price of currency
You can use this comparison table of Canadian currency transfer companies to see how many currencies they offer, what the minimum GBP transfer is and if they offer forwards and currency options as well as when they were established. You can either visit each currency broker individually or use our currency quote comparison tool to request multiple exchange rates.
Or, if you are more interested in trading GBPCAD you can compare Canadian forex brokers here.
How many GBP does 1 Canadian Dollar get at the live exchange rate?
At the live current CADGBP exchange rate 1 CAD is worth 0.538625 GBP which is a change of -0.15% from the previous day’s closing price. Over a week CADGBP is -0.15%, compared to its change over a month of -0.99% and one year of -5.65%.
CADGBP exchange rate data is updated every 15 minutes.
Jackson is a core part of the editorial team at GoodMoneyGuide.com.
With over 15 years of industry experience as a financial analyst, he brings a wealth of knowledge and expertise to our content and readers.
Previously, Jackson was the director of Stockcube Research as Head of Investors Intelligence. This pivotal role involved providing market timing advice and research to some of the world’s largest institutions and hedge funds.
Jackson brings a huge amount of expertise in areas as diverse as global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University and has authored over 200 guides for GoodMoneyGuide.com.
You can contact Jackson at jackson@goodmoneyguide.com
