GBP/CAD Bounces Back from Daily Low

GBP/CAD is slightly up on Wednesday, though it doesn’t hint to any clear direction. Currently, the pair is trading at 1.7084, up 0.08% as of 10:30. The price has had several ups and downs since it broke the support line of a steep uptrend ended on November 21. Yesterday, the pound tumbled 0.51% as the Loonie benefited from renewed hopes for a trade deal between the US and China.

The same trade optimism helped the Canadian dollar pushing hard against the pound in early trading. However, the sterling suddenly bounced back and is currently showing gains against all majors, though it is still unclear what fundamentals have driven the bullish move.

It is very possible that the clues about the latest surge lie in technical analysis. GBP/CAD dropped to a daily low at 1.7024 and might have found strong support, as investors have already priced in the US-China trade optimism. As a result, the quotation bounced back and is now waiting for relevant fundamentals to suggest a direction.

The UK is digesting the speech of opposition Labour Party leader Jeremy Corbyn. Earlier today, he accused Prime Minister Boris Johnson of discussing Britain’s health service in trade talks with the US. He showed what he claims to be leaked documents proving that Johnson used the National Health Service (NHS) in trade negotiations. The NHS is a key battleground for Labours and Conservatives ahead of the national election due on December 12.

“Perhaps he (Johnson) would like to explain why these documents confirm the U.S. is demanding the NHS is on the table in the trade talks,” Corbyn said at a press conference.

The Labour head suspects that Johnson will let the US boost drug prices as part of a post-Brexit trade agreement.

Yesterday, Corbyn faced criticism after a chief rabbi said he had failed to fight anti-Semitism within his party. The politician reacted:

“I have made very clear antisemitism is completely wrong in our society and our party did make it clear when I was elected leader and after that, that antisemitism is unacceptable in any form in our party or our society and did indeed offer its sympathies and apologies to those who had suffered.”

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