The Canadian Dollar edged higher against the US Dollar and Pound on Friday after Statistics Canada data cast the local labour market in a resilient light for July, easing market concerns about the jobs outlook.

Traders should buy dips in USD/CAD because the Canadian dollar is likely to underperform as the US economy heads for a soft landing and the Federal Reserve begins to cut interest rates, according to Barclays research.

The Pound to Canadian dollar exchange rate receded further from recent multi-year highs last week but the author’s model suggests it should remain well supported above 1.7660 over the coming days, and that it could have scope to retest the 1.78 handle in some circumstances.

GBP/CAD retains a constructive setup, but the coming week could see some of the recent moves retraced as investors account for a potential Bank of England interest rate rise on Thursday.