CAD: Upside Risk Into CPI; GBP: Move Looks Out-sized – Citi

CitiFX Strategy Research notes that Canada's CPI on Friday is the major domestic highlight, with risks skewed towards CAD appreciation.

"Investors would take this as indication that the BoC will be forced to accelerate its shift towards the hawkish side of neutral," Citi argues.

On GBP, Citi argues that the early election is a small GBP positive on face of it but the market reaction looks out-sized.

"Beyond the French election, options may offer compelling risk-reward for reengaging GBP shorts," Citi recommends.

USD/CAD is trading circa 1.3470 and GBP/USD is trading circa 1.2816 as of writing.

Source: Citi ResearchOriginal Article