30 Jan 2015
Policy Divergence: Long GBP versus CAD and EUR; Short Versus USD – TDS
FXStreet (Barcelona) - Analysts at TD Securities share their longer term trade setup for GBP against CAD, EUR and the USD.
Key Quotes
“For longer-term trades, we like to buy the pound against both the euro and the Canadian dollar.”
“We expect the euro to continue to weaken as the ECB commences its bond buying programme and expect to see EURUSD trade through parity before the end of the year.”
“In Canada, we expect a further rate cut by the BoC in March and expect subdued oil prices to weigh on the Canadian dollar.”
“Against this backdrop we expect no change to BoE policy in the short-term before the market starts to price in greater expectations of BoE hikes in the second half of the year. This should see EURGBP move lower and GBPCAD move higher throughout 2015.”
“Buy GBPCAD at 1.8839, targeting 2.00-2.02 with a stop at 1.8630”
“Sell EURGBP at 0.7500, targeting 0.6850 with a stop at 0.7750”
“Sell GBPUSD at 1.5200, targeting 1.4200 with a stop at 1.5370”
Key Quotes
“For longer-term trades, we like to buy the pound against both the euro and the Canadian dollar.”
“We expect the euro to continue to weaken as the ECB commences its bond buying programme and expect to see EURUSD trade through parity before the end of the year.”
“In Canada, we expect a further rate cut by the BoC in March and expect subdued oil prices to weigh on the Canadian dollar.”
“Against this backdrop we expect no change to BoE policy in the short-term before the market starts to price in greater expectations of BoE hikes in the second half of the year. This should see EURGBP move lower and GBPCAD move higher throughout 2015.”
“Buy GBPCAD at 1.8839, targeting 2.00-2.02 with a stop at 1.8630”
“Sell EURGBP at 0.7500, targeting 0.6850 with a stop at 0.7750”
“Sell GBPUSD at 1.5200, targeting 1.4200 with a stop at 1.5370”