GBP/USD, EUR/GBP, USD/CAD – British Pound and Canadian Dollar Stay Steady, but Euro DipsThe Candian dollar is flat in Tuesday trade. On the other side of the pond, GBP/USD is trading sideways, while EUR/GBP has posted losses.
GBP/USD is flat in Tuesday trade. In the North American session, the pair is trading at 1.2891, up 0.02% on the day.
Services PMI Rises to 50.0
British Services PMI improved to the 50.0 level in October, up from 49.5 a month earlier. The 50-level separates contraction from expansion, so this reading points to stagnation in the services sector.
GBP/USD is range-bound on Tuesday. There is immediate support at 1.2870 and this line is vulnerable to a breakout. On the upside, we find resistance at 1.2940, which was tested last week.
USD/CAD continues to trade sideways this week. In Tuesday’s North American session, the pair is trading at 1.3141, down 0.09%. On the fundamental front, Canada’s trade deficit was unchanged at C$-1.0 billion, missing the estimate of C$-0.6 billion.
USD/CAD has been range-bound in November, as the pair remains lackluster. On the downside, there is immediate support at 1.3120, and this line is vulnerable to a breakout. The 50-EMA, which is currently at 1.3185, has been a resistance line since last week, which is indicative of a downtrend.
EUR/GBP has recorded losses on Tuesday. In the North American session, the pair is trading at 0.8600, down 0.40% on the day. The pair lost ground despite a solid employment report in Spain. Unemployment change fell by 97.9 thousand, its best showing since 2012. British PMI climbed out of negative territory, improving to 50.0. This points to stagnation in the services sector.
EUR/GBP remains range-bound. The pair has flirted with resistance at 0.8647 since mid-October, but this line has proven to be resilient. After a prolonged period marked by a lack of a trend, a breakout is a distinct possibility this week. On the downside, the support level of 0.8580 remains vulnerable.