All eyes will be on the Bank of Canada this week when the monetary policy committee decides on the interest rates.
BoC has been keeping quiet since January when it hiked the policy rate to 1.25%. Market participants are not expecting any movements until July because of housing jitters, NAFTA renegotiations, and the economy.
For GBPCAD, the rate remains in a bear trend following a large rally during Oct’17-Mar’18, where it gained about 2,600 bps (1.58 to 1.84). The current retracement of this advance runs about 50%. So will we see a rebound soon, especially as prices approach the round number 1.7000? Perhaps. Should GBP weaken further this technical floor is likely to come under huge pressure.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.