GBP/CAD chart on Trading View used for analysis
- The Canadian dollar tumbled post BoC decision, but later pared losses on a hawkish statement that followed.
- As widely expected, the Bank of Canada hiked the policy rate by 25 basis points bringing it to 1.75%.
- The statement that followed was upbeat with the view that the limited spare capacity in the economy will continue to put pressure on prices.
- The hawkish tone suggests that the central bank looks set to continue on its tightening path.
- Further upside in CAD and hence downside for GBP/CAD on charts.
- We have advised a short in the pair and our call is approaching TP3.
Recommendation: Book partial profits at lows, hold for further weakness.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
