- GBP/CAD is currently trading in a disciplined fashion this year. In spite of range expansion in March, the pair is hugging its trading range midpoint.
- Since the start of the year, the real interest rate spread for GBP/CAD has in fact improved, although funding markets support GBP/CAD weakness.
- In the short to medium term, range-bound trading is likely to be found (probably below the trading range midpoint).
- However, while the 2020 year-end Brexit deal deadline looms, GBP could later surprise to the upside, just as we saw in June/July earlier this year.
For further details see:
GBP/CAD: Range Trading Is Likely, Yet GBP Could Surprise To The Upside In 2021