The Carney trade has taken a turn

GBP was the worst performer last week

The latest stretch of trading has been especially discouraging for sterling bulls. At a time when most currencies have taken a bite out of the US dollar, the pound has backed off.

Last week, it was the worst performing G10 currency.

The Canadian dollar, meanwhile, found a way to the top of the chart despite a rough week for the risk trade.

With GBP and CAD on opposite ends of the spectrum, we can't help but talk about former BOC Governor an current BOE Governor Mark Carney. The Carney trade started so spectacularly as buying GBP and selling CAD when he left home climbed for years.

Then Brexit hit and GBP/CAD has been in full reverse. On Friday, the pair broke a bottom near 1.62 that held on many occasions and finished the week at the lowest levels since January. That break and the failed bounce to 1.80 points to more pain for the trade in the weeks ahead.