Our research paper last week suggested Canadian dollar buyers target C$1.90 as resistance above there at C$1.93 would likely cap the market. Unfortunately for CAD buyers this held true and the pounds weak performance since yesterday has pushed GBPCAD 7 cents lower to C$1.83.
Normally a fall of 3.5% in GBPCAD in a day would have something to do with a surge in oil and commodities, or a rebound in stock markets reviving confidence in riskier currencies like the CAD. However the CAD is weaker against other currecies today due to a fall in the price of oil so the story is simply one of sterling weakness.
The charts suggest sterling weakness may continue for sometime and GBPCAD could test last months low of C$1.79 this week.
Tuesday, 2 December 2008
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