With ongoing weak sentiment for GBP breaking below 1.29 GBPUSD as a result of break down in Brexit negotiations, technicals breaking key levels to the downside helping to push this market lower.
On the CAD side the BOC hiked rates today 25bps to 1.75% from 1.5% as expected, but also featured hawkish comments in the statement saying "bringing rates to neutral" and removing the word "gradual" from the statement. We can expect further rate hikes in the future from BoC as headline inflation is above the 2% target. Causing CAD to strengthen across the board.
GBPCAD was the biggest mover post the data as GBP was the weakest currency on the day...
Technical area 1.6600 for this market is a great long, which i will take however due to the imbalance now present im not confident it will hold. If the level breaks convincingly and closes below I will look to sell the 1.6600 on a retest... However have to take the support level long.
on this change in fundamentals, I will long the support but look to lock the trade in breakeven very quickly
On the CAD side the BOC hiked rates today 25bps to 1.75% from 1.5% as expected, but also featured hawkish comments in the statement saying "bringing rates to neutral" and removing the word "gradual" from the statement. We can expect further rate hikes in the future from BoC as headline inflation is above the 2% target. Causing CAD to strengthen across the board.
GBPCAD was the biggest mover post the data as GBP was the weakest currency on the day...
Technical area 1.6600 for this market is a great long, which i will take however due to the imbalance now present im not confident it will hold. If the level breaks convincingly and closes below I will look to sell the 1.6600 on a retest... However have to take the support level long.
on this change in fundamentals, I will long the support but look to lock the trade in breakeven very quickly
Advantages for the short... A) higher reward to risk B) Get paid interest