The GBP/CAD is up 0.15% this Thursday after two consecutive days of weakness. These come as crude oil price on the Brent benchmark takes a breather from three days of gains, putting the Loonie on the back foot. However, the overall sentiment on this pair remains bearish as crude oil fundamentals continue to assume an overall bullish tone, which has expected to benefit the Canadian Dollar at the expense of a battered Pound.
Some weeks back, the Bank of England’s pessimistic outlook on the U.K. economy triggered the current round of bearishness on the pair. This week’s dismal manufacturing PMI data and the steep drop in the CBI Business Expectations Index have helped to weaken the Pound further.
Conversely, three days of solid demand for crude oil as the Iran nuclear negotiations stall and market rumors of an OPEC + oil production cut have seen the commodity-linked CAD gain traction this week. These triggers have combined to send the GBP/CAD lower by 0.29% this week. The GBP/CAD is on the path toward a third successive weekly loss, dropping 71% and 0.86% in the previous two weeks.
GBP/CAD Short (Sell)
Enter at: 1.52263