Some parents from Hong Kong are always concerned about the trend of GBP and CAD mainly because Britain and Canada are two popular markets for education, immigration, and property investment. At the same time, their currencies take the lead when compared to those of major industrial countries, featuring the annual increase surpassing that of the other non-American ones respectively. As such, can CAD and GBP maintain the bullish trend amid this year？To get more news about Gold Technical, you can visit wikifx.com official website.
Start with CAD. Its annual increase takes first place when compared to that of the other currencies at a rate of 5%. The figure will reach 15.21% if it is calculated on a 12-month basis, the indication of a good performance. This situation is caused by the rise of returns on Canadas energy exports because of the rapid growth of oil prices on one hand. On the other hand, the strong recovery enjoyed by the American economy is conducive to Canada as the U.S. is the largest market for its exports, which is similar to the fact that the sound Chinese economy is favourable to AUD. Most importantly, the Bank of Canada (BOC) has announced its delisting, which is estimated to take the leading role in interest-rate hikes, thereby being the most hawkish among central banks of numerous industrial powers.
In my opinion, CAD/USD even CAD/JPY, the cross trade, can bear witness to a bullish trend. According to the annual target, I think that USD/CAD is possible to drop at 1.1276 points while CAD/JPY has a chance to rocket to 106 points. A student and a friend of mine told me respectively last week that they missed this golden opportunity, which was due to their fear of a peak when they saw the rapid growth of CAD/JPY. There is no doubt that CAD has reached a 3-year record high level whereas it is worth learning lessons from the past when the currency arrived at a year and 2-year record-breaking high levels but the opportunity slipped away without being grasped. In addition, CAD is possible to up to a 4-, 5- or even 6-year record level. In this case, we cannot be too afraid of peaks during our investment, focusing on the high level that a currency may hit instead of the level where the current price is.
As for GBP, it ranks second with an annual increase of 2.53%, boasting a growth rate of 13.38% based on a 12-month calculation. The financial market can feel relieved after elections because the Conservative Party won local elections unexpectedly, providing Johnson with a narrow escape. In addition, Scottish National Party (SNP) harbored a victory in the parliamentary election but without an outright majority of seats and unveiled that the independence referendum would be held in 2023 rather than this year, indicating that this time bomb will not explode in the near future. Therefore, a bullish trend can be seen by GBP/USD even GBP/JPY in the short term.
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