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GBP/CAD – Test of Old Highs Ahead?
One of the cleanest uptrends over the past year has been in GBP/CAD pair which continues show no signs of exhaustion. After taking a breather from fresh highs above the 2.0700 level the pair looks ready to roar higher especially if UK data continues to impress.
Earlier this week the UK PMI Manufacturing report came in much better than expected, but the true test of the state of the UK economy will come tomorrow when the market gets a look at the PMI Services data. If that release beats expectations than the BoE will have little choice but to consider tightening by year end.
Although no one expects any change out of the BoE on Thursday, the central bank may hint at a more hawkish posture in its communique and that in turn would send GBP/CAD towards its recent highs at 2.0500 level