USD/CAD Risks Larger Correction as RSI Divergence Takes Shape

Talking Points:

GBP/USD Snaps Bearish RSI Formation, Topside Targets in Focus Ahead of BoE.

USD/CAD Risks Larger Correction as RSI Divergence Takes Shape, BoC Defends September Rate-Hike.

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The British Pound outperforms its major counterparts following a pickup in the U.K. Consumer Price Index (CPI), with GBP/USD at risk of staging a larger advance should the Bank of England (BoE) alter the outlook for monetary policy.

Even though the BoE is widely anticipated to retain the current stance at the September 14 meeting, a growing number of central bank officials may argue ‘the withdrawal of part of the stimulus that the Committee had injected in August last year would help to moderate the inflation overshoot while leaving monetary policy very supportive as price growth is expected to hold above the 2% target throughout the policy horizon. In turn, Governor Mark Carney And Co. may increase their efforts to prepare U.K. households and businesses for higher borrowing-costs, and the British Pound may continue to gain ground over

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2017/09/12/USDCAD-Risks-Larger-Correction-as-RSI-Divergence-Takes-Shape.html?DFXfeeds=forex:fundamental:us_dollar_index:daily_dollar