📝Closing Short GBP/CAD Trade to Lock In Profit: MUFG Strategy

Closing short GBP/CAD trade idea to lock in a profit.

The trade recommendation has worked well end the pair fell to an intra-day low of 1.6359 last week. The trade idea has been supported by the release of the stronger-than-expected Canadian consumer price index (CPI) report for August, which has encouraged market participants to price in a higher probability of one final hike from the Bank of Canada (BoC) before the end of this year.

In contrast, the release of the United Kingdom CPI report for August provided a big downside surprise for core and services inflation that contributed to the Bank of England (BoE) leaving rates on hold at 5.25%. While the decision was a close call, we are is more confident that the BoE's rate hike cycle has come to an end.

- MUFG Strategy