The Pound to Canadian Dollar (GBP/CAD) exchange rate climbed to its strongest level in around a decade on Monday as persistently weak oil prices continued to undermine the commodity-linked Canadian Dollar.
At the time of writing, GBP/CAD was trading at CA$1.8971, having eased back slightly after touching a session high of CA$1.8980.
Pound to Canadian Dollar (GBP/CAD): 1.89894 (+0.16%)
Euro to Canadian Dollar (EUR/CAD): 1.623308 (-0.04%)
Dollar to Canadian Dollar (USD/CAD): 1.42169 (+0.12%)
DAILY RECAP:
The Canadian Dollar (CAD) found itself under pressure on Monday, as weaker oil prices continued to weigh heavily on the commodity-linked currency.
Crude has fallen sharply since the US and Iran agreed an interim peace agreement, allowing shipping to resume through the Strait of Hormuz.
Brent crude – the global benchmark for oil – remains below $72 per barrel, its lowest levels since before the war began in late February and down from its mid-war peak of $113.
This sharp decline in crude has dragged the Canadian Dollar lower in recent weeks, with subdued prices continuing to pressure CAD on Monday.
Meanwhile, the Pound (GBP) enjoyed modest support on Monday as markets continued to unwind the political risk premium that has burdened Sterling in recent weeks.
MP Andy Burnham is largely expected to become the next Prime Minister, without a drawn-out leadership contest unsettling investors.
Burnham has sought to soothe markets since announcing his bid for Labour leader, committing to the government’s existing fiscal rules and laying out ambitious plans for the economy.
GBP investors have responded positively to Burnham’s rhetoric, helping GBP rally as political anxiety eases.
Near-Term GBP/CAD Forecast: Canadian PMI to Aid the ‘Loonie’?
Looking forward, Canada’s latest Ivey PMI is due out on Tuesday afternoon. The survey is expected to reveal another acceleration in economic activity in June, with the index forecast to reach its highest level since September 2025, when it hit a 15-month peak.
If the PMI prints as anticipated, the Canadian Dollar could catch bids.
Meanwhile, oil price movements could continue to influence the commodity-linked ‘Loonie’. If crude prices remain subdued, this could offset the potential upside from the PMI results.
As for the Pound, UK data is in short supply on Tuesday, potentially leaving the British currency to trade without a clear direction.
