Opportunities through the more exotic currency crosses are often overlooked. This week, we are highlighting a long term opportunity in the GBPCAD. Technical evidence suggests that a significant low formed in November 2007 and upside potential significantly outweighs the risk.
• Eurozone Economy Continues to Slow • Big Week for the British Pound
A relatively quiet and data free night in the currency market as FX trading continues to be influenced by macro rather than micro factors.
Despite a sharp increase in credit market concerns surrounding the health of Freddie Mac and Fannie Mae, as well as caution heading into the thick of the second quarter earnings season, carry interest actually rose over the past week. The DailyFX Carry Trade Index rose 124 points from last week to 29,059. However, further upside progress has clearly be curbed by a triple top that has dampened risk appetite since May.
Technical Currency Analyst