GBP/USD, EUR/GBP, USD/CAD – North American Session Daily Forecast
GBP/USD has posted slight gains on Thursday. In the North American session, the pair is trading at 1.2932, up 0.28% on the day.
British Consumer Confidence Dips
The turmoil surrounding Brexit and a weak global economy continue to weigh on the British consumer. GfK Consumer Confidence remains mired in negative territory and dipped to -14 in October, matching the lowest reading in 2019. Weak consumer confidence usually translates into decreased consumer spending, which is bad news for the economy.
GBP/USD tested resistance at 1.2940 earlier on Thursday. If the pound breaks through this line, it has room to climb towards the symbolic line of 1.3000, which was tested last week. On the downside, there is support at 1.2870.
USD/CAD is flat on Thursday, after posting considerable gains on Wednesday. In the North American session, the pair is trading at 1.3160, down 0.05%.
Canadian GDP Misses Estimate
Canada’s economy grew by 0.1% in August, shy of the forecast of 0.2%. Investor reaction was muted, as USD/CAD has remained steady on Thursday. Traders should be prepared for stronger movement on Friday, when the U.S. releases wage growth and nonfarm payrolls.
USD/CAD tested resistance at 1.3200 on Wednesday, but then retracted. This line remains under pressure, which I expect to continue. I am keeping an eye of the 50-EMA line – USD/CAD broke above this line on Wednesday but then retreated. If USD/CAD regroups and can push past the 50-EMA, it would be a bullish signal and I would expect to see buyers.
EUR/GBP has posted losses on Thursday. In the North American session, the pair is trading at 0.8614, down 0.35% on the day. The pound-to dollar ratio is higher on Thursday, which has pushed EUR/GBP lower.
EUR/GBP remains close to the 0.8647 line, which is currently a weak resistance line. The pair has flirted with this line since mid-October, but has not been able to break through this resilient line. Above, we find resistance at the round number of 0.8700. On the downside, there is support at 0.8580, which was tested last week.