Instrument: GBPCAD
Bullish Preference:
Buy position is envisaged if price trades above 1.71728 With take profit at 1.71855
Bearish Preference:
Sell position is envisaged if price trades below 1.71608 with Take profit at 1.71501
Fundamentals:
CAD: 2:30pm Core Retail Sales m/m
Retail Sales m/m
Comment:
The GBP/CAD exchange rate surged to an eleven-week peak following hawkish comments from Bank of England (BoE) officials and expectations of tax cuts. BoE Governor Andrew Bailey, during his testimony to the Treasury Select Committee, cautioned about the persistent risks of high-level inflation, while Monetary Policy Committee (MPC) member Catherine L. Mann projected ongoing wage and price pressures into 2024.Oil prices fell Thursday, adding to the previous session’s sharp losses as the unexpected delay in an upcoming OPEC+ meeting spurred uncertainty over the extent of the intended reduction in supplies by the producer group
Canada reported a marginal increase in consumer prices by 0.1% for October. However, headline inflation unexpectedly dropped to 3.1%, with core inflation decreasing slightly to 2.7%. Despite a significant annual decrease in gasoline prices by 7.8%, the core rate excluding gasoline stood at 3.6%. In response to these figures, Scotiabank analysts anticipate a subdued reaction from the Canadian dollar but expect limited depreciation due to the high core prices supporting a relatively hawkish stance from the Bank of Canada.
Analysis: SCRUM Team