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Morgan Stanley Like Long GBP/CAD

FOREX

Morgan Stanley recommended a long GBP/CAD position late on Friday, targeting a move to 1.80, with a stop at 1.70.

  • They believe that longs in the pair “stand out as the clearest risk-neutral carry trade. This attractiveness would be amplified if UK CPI remains sticky, limiting pricing for BoE rate cuts, widening the contrast with the BoC.”
  • They go on to note that “GBP/CAD has been in a clear technical uptrend since early 2023. This implies that GBP/CAD could see 1.80 by mid-2025, the top of the trend channel range, though risks are skewed earlier.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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