Trade Ideas

Traders should buy dips in USD/CAD because the Canadian dollar is likely to underperform as the US economy heads for a soft landing and the Federal Reserve begins to cut interest rates, according to Barclays research.

Pound Sterling has fallen heavily against all major counterparts over the recent week but traders should buy into the resulting dip against the Euro and safe-haven Swiss Franc, according to Barclays strategists.

The Pound to Euro exchange rate has unwound all of the gains made since the earliest days of Russia’s invasion of Ukraine in recent weeks, leaving it trading at a discount to short-term fundamental factors and signals that led TD Securities to tip Sterling as a buy with a 1.2121 target this week.

The Australian Dollar is set to remain on the front foot this week as investors rediscover their appetite for risk, according to currency strategists at Barclays, who have recommended that clients of the bank bet on a rise in the Antipodean unit relative to its largest North American rival.

“We still like GBP/AUD upside as a medium-term monetary policy divergence view but we think GBP/CAD over the next few weeks could be the better trade.” - Nomura