Westpac analysts are recommending to go long on GBP/CAD cross at current rate of 1.6360 for the target price 1.6775, while maintaining a stop loss of 1.6230.
Key Quotes
“Rationale:
- At least one level of UK uncertainty has been resolved
- Selection of Boris Johnson may see a “honeymoon” as his Cabinet forms
- Newly elected EU officials and Brexit negotiators may be more open to discussions
- Johnson may initiate tax and policy changes to bolster a market friendly profile
- A lift in sentiment could trigger recently absent investment and property activity
- As Haldane states, BoE may have less dovish stance despite Carney’s “Sea Change”
- Canada may be regaining growth momentum, but late Oct. elections will create uncertainty
- US House is in no rush to ratify USMCA trade arrangements.”