Pound Holds Ground Despite Canada's Higher Inflation

The Pound to Canadian Dollar (GBP/CAD) exchange rate held steady on Monday as investors reacted calmly to Canada's latest inflation figures.

The data showed that Canadian inflation accelerated from 2.8% to 3% in July, exceeding forecasts of a 2.9% rise.

The core inflation rate also rose above expectations, climbing from 2.1% to 2.3% over the same period.

The increase in Canadian CPI was largely attributed to higher energy prices, with fuel pump prices rising 25% year-on-year due to ongoing disruptions to shipping through the Strait of Hormuz.

However, the Loonie struggled to gain traction from the inflation data, as analysts suggested that the acceleration in price growth is unlikely to sway a potential Bank of Canada interest rate hike later this year.