Pound Holds Steady Despite Canada's Higher Inflation

The Pound to Canadian Dollar exchange rate held steady on Monday despite Canada's latest inflation figures. The GBP/CAD rate was trading at CA$1.8845, down roughly 0.2% from the start of the session.

The Canadian dollar struggled to build support off the inflation data, with analysts suggesting that the acceleration in price growth is unlikely to impact a potential Bank of Canada interest rate hike later this year.

The main driver behind the rise in Canadian CPI was energy prices, particularly at the fuel pump, which increased by 25% year-on-year due to disruptions in shipping through the Strait of Hormuz.

Looking ahead, the Pound to Canadian Dollar exchange rate may strengthen on Tuesday with the release of the UK's jobs report. June's data is expected to show a fall in unemployment and an uptick in employment growth.