MUFG Research added a short GBP/CAD position to its TOTW portfolio, while maintaining a long USD/SEK position. MUFG added a short GBP/CAD targeting a move towards 1.63, with stop at 1.07050.
MUFG also maintains a long USD/SEK targeting a move towards 11.450, with a stop at 10.650.
"We are recommending a new short GBP/CAD trade idea ahead of [this] week's BoE policy meeting. The pair is currently trading just above support from the 200-day moving average that comes in at around 1.6740. A break below would open the door to a further fall back towards the lows from earlier this year closer to the 1.6000-level," MUFG notes.