GBPCAD Lower
Updated
Trying GBPCAD lower here.
Couple of reasons for the idea. Firstly looking at the narrative it seems to have changed in CAD favour. The GBP narrative is a little worse since the lower UK inflation data and the PMI dat this week didn't help much either. Meanwhile the CAD narrative seems pretty stable on a relatively hawkish BoC and a good economy. This along with extreme GBP longs could see the pair move lower.
It also helps as it is a proxy to GBPUSD. I'm expected the fed to be a little hawkish today, while most are expecting this i think it still makes sense to go with it.
Rate differentials are suggesting a little lower and oil is performing pretty well which should help CAD. We're also entering seasonals that are pretty poor for GBPUSD and so likely GBPCAD.
Corporate month end is tomorrow as well which could see USD buying and so lower GBPCAD as a proxy to GBPUSD.
Not trading/investment advise, feedback welcome!
Couple of reasons for the idea. Firstly looking at the narrative it seems to have changed in CAD favour. The GBP narrative is a little worse since the lower UK inflation data and the PMI dat this week didn't help much either. Meanwhile the CAD narrative seems pretty stable on a relatively hawkish BoC and a good economy. This along with extreme GBP longs could see the pair move lower.
It also helps as it is a proxy to GBPUSD. I'm expected the fed to be a little hawkish today, while most are expecting this i think it still makes sense to go with it.
Rate differentials are suggesting a little lower and oil is performing pretty well which should help CAD. We're also entering seasonals that are pretty poor for GBPUSD and so likely GBPCAD.
Corporate month end is tomorrow as well which could see USD buying and so lower GBPCAD as a proxy to GBPUSD.
Not trading/investment advise, feedback welcome!
Note
moving stop loss to 1.712Note
coming out at 1.6932 for 1% win, we have BoE tomorrow and while i think they could be dovish it seems a little risky to hold over the meeting
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