GBP/CAD down five days in a row
GBP/CAD is down 107 pips today at 1.6376, making it the biggest loser of the day, the pip and percentage terms. This is the fifth day of decline, after having reached a two-and-a-half months last Friday.
This pair is really a tale of two cities. The Canadian dollar is on all the fundamentals and the book is all about the policy. What is interesting is that next week, the narrative can flip. The NAFTA negotiations are underway to take the front of the stage and which could affect the CAD, GBP trade may shift back to the BOE hike that could come on the 2nd of November.
Technically, the pair is between the 38.2% and 50% retracement of the September rally and the right to the support of the August 31 high.
If these levels break or hold, it should be interesting for the upcoming week.