On June 26th, Jin10 News reported that Morgan Stanley suggested going long on GBP/CAD due to the policy divergence between the Bank of Canada and the Bank of England. The bank expects the Bank of Canada to be more proactive in cutting interest rates. This divergence supports a bullish view on GBP/CAD. The potential for CAD to become a funding currency further enhances the attractiveness of going long on GBP/CAD, especially if UK inflation remains sticky, limiting the room for the Bank of England to cut rates.
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Morgan Stanley: Suggest going long on GBP/CAD
On June 26th, Jin10 News reported that Morgan Stanley suggested going long on GBP/CAD due to the policy divergence between the Bank of Canada and the Bank of England. The bank expects the Bank of Canada to be more proactive in cutting interest rates. This divergence supports a bullish view on GBP/CAD. The potential for CAD to become a funding currency further enhances the attractiveness of going long on GBP/CAD, especially if UK inflation remains sticky, limiting the room for the Bank of England to cut rates.