GBP/CAD is one of the best performers today and has broken out to the highest since May 7.
Risk aversion and falling oil prices are weighing on the loonie while the pound rebounds on a better services PMI. The narrative of the past three weeks has been a weak pound but GBP has been in the middle of the pack, it’s just that the US dollar has been so strong.
GBP/CAD illustrates the residual strength. Even if Carney doesn’t opt to hike before February, the BOE is still well on the path to hikes before the BOC.
Technically, it’s been a long period of consolidation since the big rally that started at this time last year. If the upside begins to break, another extended period of strength is possible.
GBPCAD daily
