USD/CAD
https://www.tradingview.com/x/9BskMjfg/
Oil prices, a significant driver of the CAD, are expected to stabilize, further supporting the currency.
Markets may price in two more 25 bps rate cuts from the Bank of Canada (BOC), but with the Fed set to cut rates more aggressively, shorting USD/CAD could be the better trade. The CAD may strengthen due to the widening rate differential.
Price is currently at the breakdown zone, acting as resistance. We plan to enter a sell position once we see a slight rejection on the lower timeframe.
GBP/USD
https://www.tradingview.com/x/rfsnP9uh
We expect the BOE to hold off on rate cuts as the UK’s economic recovery continues into Q3, with labour market and GDP data being closely monitored.
A 50 basis point rate cut is anticipated from the Fed if the economy shows significant signs of slowing.
We plan to place a long order if the price pulls back and holds the breakout zone as support.