GBP/CAD shorts
Well, it is always hard getting back into the saddle after a decent break , but having left the beautiful welsh coast yesterday afternoon in perfect sunshine it has been even harder this time. However, as I re-orientate myself into the FX marketsI thought I would kick off my daily posts with a GBPCAD chart of the day. So, as per usual I am looking to pair a weak currency against a strong/stronger currency.
The weak: GBP
With an increasingly bearish outlook for the GBP as Boris Johnson looks set to take the helm of the UK Brexit negotiations. BOE's Vlieghe stated on Friday that rate cuts are more likely than hikes if a no -deal Brexit materialises and that the economic outlook for the UK had deteriorated. See Justin's full coverage here.
The strong: CAD
The Bank of Canada kept to a neutral stance last Wednesday and is particularly focusing on the impact of trade conflicts on Canadian growth. With a dovish shift from many central banks, a neutral footing from the BOC should keep Cad bid.
The risks
Significant Brexit related news and any large shifts in Oil prices (impacting CAD)
The technicals
Sellers expected from 200EMA on 1 hour chart and Pivot point on chart below.
