FxWirePro: CAD boosted by hawkish BoC statement, GBP/CAD on track to test trendline support at 1.66, stay short

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.