GBP/USD, USD/CAD, USD/MXN – North American Session Daily Forecast

GBP/USD

GBP/USD has started the week with modest losses. In the North American session, the pair is trading at 1.2438, down 0.24% on the day.

It’s a quiet start to the week, with no major U.S. or U.K. events. On Tuesday, the U.K. releases its monthly budget balance.  The U.K. had a surplus of 2.0 billion pounds in July, marking the first surplus since February. Another surplus in the August release would be bullish for the pound.

Technical Analysis

GBP/USD is rangebound at the start of the week. On the upside, there is resistance at 1.2510. This line was tested on Friday but remains in place as resistance. On the downside, there is support at 1.2420. This is immediately followed by support at 1.2380.

GBPUSD 4-Hour Chart

USD/CAD

USD/CAD is trading sideways on Monday. In the North American session, the pair is trading at 1.3276, up 0.10% on the day.

Loonie Yawns After Mixed Retail Sales

USD/CAD was quiet late last week, and even retail sales failed to wake up the lethargic Canadian currency. Retail sales in July improved to 0.4%, matching the forecast and marking a 4-month high. Core retail sales could not keep up and declined 0.1%, shy of the estimate of +0.2%. This is the second decline in three months, which could raise concerns among investors about the strength of the Canadian economy.

Technical Analysis

USD/CAD tested resistance at 1.3282 earlier in the day but was unable to consolidate and finds itself back below this line in the North American session. We could see the pair continue to test this line on Monday. The next resistance line is at 1.3320, which has held since September 4. On the downside, there is support at the round number of 1.3200.

USD/MXN

The Mexican peso ended the week on a whimper and the lack of activity has continued on Monday. In the North American session, the pair is trading at 19.44, down 0.10% on the day.

Technical Analysis

USD/MXN has tested resistance at 19.45 on Monday, but this level has proven a major obstacle for the pair. Will this line finally break? The next resistance line is at 19.70, which is also the 20-day simple moving average (SMA) that should limit upside movement in the vicinity of this line. On the downside, there is support at 19.20, which has held since August 1.