Pound to Canadian Dollar Forecast: GBP Climbs as Oil Price Volatility Hits Loonie

The article forecasts GBP/CAD higher as the Canadian dollar weakens from volatile oil prices and geopolitical headlines around the Middle East. GBP/CAD traded around CA$1.8634, up about 0.4% for the week, while Brent crude swung between $91 and $97 per barrel. CAD found some late-week support after stronger-than-expected Canadian labor data, including an unemployment rate drop to 6.6% in May. Sterling also drew support from revised UK PMI readings, but gains faded as domestic data thinned. Looking ahead, the Bank of Canada rate decision and UK GDP data are the key catalysts, with oil-market direction and Middle East developments likely to remain important for near-term GBP/CAD trading.