GBP/USD, EUR/GBP, USD/CAD – Currencies in Holding Pattern Ahead of Fed MinutesInvestors await the release of the Federal Reserve minutes, and predictably, there is little movement ahead of this major event. We could see some volatility from the British pound and Canadian dollar after the release, which is scheduled for 17:00 GMT.
GBP/USD continues to have a quiet week. In Wednesday’s North American session, the pair is trading at 1.2921, down 0.06% on the day. There are no British events on the calendar. On Thursday, the U.K. releases the monthly budget deficit, which is forecast to narrow to GBP 8.5 billion pounds.
GBP to USD is hovering just above support at 1.2910, which has remained relevant throughout the week. Below, there is support at the round number of 1.2900. On the upside, there is support at 1.2970, which is protecting the symbolic number of 1.3000. Above, we find resistance at 1.3100.
USD/CAD has posted slight gains on Wednesday. In the North American session, the pair is trading at 1.3227, up 0.15% on the day.
Canadian CPI Rebounds
There was positive news on the inflation front, as consumer inflation rebounded in October with a gain of 0.3%. This matched the forecast and follows back-to-back declines. Despite the solid reading, the Canadian dollar could only muster slight gains against the greenback.
On the downside, there is support for USD/CAD at 1.3250. The pair posted considerable gains on Tuesday and broke above the 200-EMA line, which is currently providing support at 1.3233.
Below, the 50-EMA is just above the 1.32 level. Earlier in the day, USD to CAD tested resistance at 1.3300 and could break above this line on Wednesday. Close by, we have resistance at 1.3330.
EUR/GBP is drifting on Wednesday. In the North American session, the pair is trading at 0.8579, up 0.12% on the day.
It continues to be a quiet week for EUR/GBP. There is immediate support from 0.8560, which has been relevant for the past week. Below, there is support at the round number of 0.8500. On the upside, there is immediate resistance at 0.8596, which has been relevant since mid-October. Above, there is resistance at the round number of 0.8700.
Although EUR to GBP is within striking distance of the immediate resistance and support lines, there are no signs that a breakout is near, so the lack of activity could continue for the remainder of the week.