KEY POINTS
BoC scheduled to give a speech today
The BoC governor is scheduled to give speech today on the impact of the labor market and sectoral implications in Canada. The speech is expected to provide volatility to the CAD currency and the speech by Macklem will be very important for the GBP/CAD. Keeping a close eye on the Governor will be very important for CAD traders, although we expect the Governor to send a Fed-like message to the market.
In the speech today, we expect Macklem to speak about;
Technical outlook
Loonie traders will look for influence from Macklem speech today, any weakness the Loonie could aim to GBPCAD uptrend movement should the Pound continues to gain.
The chart for GBPCAD has clearly been in a strong bullish movement in recent weeks despite the market moving with a consolidation mode between 1,5700 and 1,800 level.
the vaccination process and reopening of the economy in the U.K could drag the performance of the CAD; however, the commodity prices could be that one that can help boost the strength of the CAD.
The GBPCAD continued today to edge north ahead of the BoC speech and a technical breakout above the 1,8000 level could set the pair for more buying pressure.
Lulama Msungwa
Research & Markets Analyst
Scope Markets
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