Big day for the Carney cross
The pound has made steady progress against the Canadian dollar since the start of September. In that two-month period, the pair has climbed 10 cents.
Today the pound is the top performer while the Canadian dollar is the G10 laggard.
Technically, GBP/CAD bounced today precisely at the September high. It’s the second time in the past couple months the pair has broken higher and then retraced back to an old low. After jumping on Sept 15, the pair retraced to the breakout in the subsequent month.
On net, the pair is looking strong and is a spot GBP longs should consider, especially those expecting something hawkish from Carney this week who want to avoid USD risk.