Oil Price Slump Weighs on Canadian Dollar Amid Hopes for US-Iran Ceasefire

The Pound to Canadian Dollar exchange rate edged higher on Monday as hopes of a pause in the US-Iran conflict triggered a sharp fall in oil prices and weakened the commodity-linked Canadian Dollar.

Hopes for a ceasefire in the Middle East led to a 6% decline in crude prices, weighing on the CAD. The Pound (GBP) struggled to capitalize on this weakness as falling oil prices reduced expectations of a more hawkish Bank of England decision later this week.

The GBP/CAD exchange rate was trading around CA$1.8797, up approximately 0.1% on the day.