Big Trade Sell GBP/CAD 03.09.16 +25

BK GBP/CAD Big Trade -- Close at Market (now 1.8906 ) We’ll take the small profit and reload

we hit 1.8910

Sell GBP/CAD at 1.8935 (market)

Stop at 1.9135

The Bank of Canada meets tomorrow and with oil prices recovering and Canadian data turning positive, they have plenty of reasons to be less pessimistic. When the Bank of Canada last met, the Bank of Canada left rates unchanged with Governor Poloz sounding surprisingly optimistic. He was not concerned about a global recession and believes that the weak Canadian dollar will aid growth. Poloz was also encouraged by the economy’s resilience and flexibility and instead of lamenting about the currency’s rapid decline, he said a further fast fall could boost inflation. This month he has even less to be worried about with oil near $35 a barrel, GDP growth accelerating and consumer prices rising. In contrast, the BoE Governor Mark Carney saw a frosty exchange in the UK Parliament testifying on the issue of Brexit. Mr. Carney has tried to remain as neutral as possible in the debate but his clear pro-EU leanings came under strong criticism from pro-Brexit forces in the Parliament and some of the questioning was downright hostile. The market remains at a standstill as the pro and anti Brexit forces remained even split for now, but GBP is clearly running into resistance at the 1.4300-1.4400 region after its short covering rally and may now drift lower towards 1.4000 support. We believe these forces will drive GBP/CAD lower


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