Global macro overview for 07/09/2016:
The Bank of Canada interest rate decision is scheduled for release today at 14:00 GMT. The market participants expect the BOC to leave the interest rate unchanged at the level of 0.50%. As we remember, BOC Governor Stephen Poloz introduced two separate interest rate cuts in 2015, but since then no more rate cuts have been made. The main reason behind this behavior is the wait-and-see approach for the results of the government's stimulus. In conclusion, the recent slight growth slowdown in the Canadian economy is visible, but any rate cut would not be beneficial at this stage.
Let us now take a look at the GBP/CAD technical picture on the daily time frame. The long-term trend is clearly down as the consecutive sequence of lower highs and lower lows are clearly visible since December 2015. Currently, the market is trading below all moving averages and below the short-term golden trend line as well. The next support is seen at the level of 1.7160 and the next resistance is seen at the level of 1.7544.
