GBP/USD, EUR/GBP, USD/CAD – Currencies Drifting in Quiet MarketIt has been a very quiet Wednesday session. The Canadian dollar and British pound are flat, and EUR/GBP is also trading sideways. Stronger inflation numbers in the U.S. failed to cause any reaction in the curency markets.
GBP/USD is flat in Wednesday trade. In the North American session, the pair is trading at 1.2888, down 0.01%.
British CPI falls to 3-year Low
British consumer inflation slipped to 1.5% in October, down from 1.7% a month earlier. This missed the estimate of 1.6%. More importantly, this marked the lowest inflation level since November 2016. The British economy is not in good shape, and weak consumer confidence and spending could result in inflation levels continuing to fall.
GBP/USD continues to put pressure on 1.2810, which is currently an immediate support line. On the downside, there is support at 1.2720. Above, we find resistance at 1.2925, which is protecting the symbolic level of 1.3000.
USD/CAD is almost unchanged in Thursday’s North American session. Currently, the pair is trading at 1.3244, up 0.06% on the day. With no Canadian indicators on the calendar, the Canadian dollar is unlikely to show much movement for the remainder of the day.
The pair remains range-bound, but the pair continues to test resistance at 1.3250. This line is under strong pressure. Above, we find resistance at the round number of 1.3300. The 200-EMA remains relevant and is just below the candlesticks. The 50-EMA is just below this line. Lower, there is support at 1.3150.
EUR/GBP is trading sideways on Wednesday. In the North American session, the pair is trading at 0.8572, up 0.04% on the day.
EUR/GBP remains slightly below the 0.8596. This line has performed admirably in support, holding off the pair since mid-October. However, the line is showing signs of fatigue this week, and we could be on the verge of a downward breakout. There is immediate support at 0.8560 – if EUR/GBP breaks below this line, it could be smooth sailing all the way to 0.8500, which is the next support level. On the upside, there is resistance at the round number of 0.8700.