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

GBP/USD is trading sideways on Thursday, after sustaining sharp losses a day earlier. In the North American session, the pair is trading at 1.2361, up 0.02% on the day.

Pound Slides to 2-Week Low

The British pound fell 1.0% percent on Wednesday, and dipped to a low of 1.2302 on Thursday, its lowest level since September 13. Wednesday was a day to remember on the political front, as the U.K. Supreme Court delivered a possibly historic decision. The Court held that Prime Boris Johnson had acted unlawfully when he suspended Parliament earlier this month. The decision has weakened Johnson politically, and worried investors reacted by sending the pound sharply lower.

Technical Analysis

The pound pushed below support at 1.2420 and 1.2380 on Wednesday. GBP/USD tested support at 1.2320 on Thursday, the first time that has occurred since September 12. This line could see more activity in the North American session.

USD/CAD

USD/CAD continues to have an uneventful week. In North American trade on Thursday, the pair is trading at 1.3269, up 0.07% on the day.

U.S. Economy Grew by 2.0% in Q2

With no Canadian releases on the schedule, there was a possibility that today’s U.S. GDP release would shake up the lethargic Canadian currency. However, that did not happen as the third estimate release showed growth of 2.0%, which merely confirmed the second estimate reading. This points to a significant slowdown in U.S. growth in the second quarter, after robust growth in Q1 of 3.1%. This could have negative repercussions for the Canadian dollar, as the Canadian economy is heavily dependent on its U.S. neighbor.

Technical Analysis

USD/CAD remains within striking distance of resistance at 1.3282 and this line should remain relevant for the remainder of the day. The pair has tested this line but has been unable to consolidate above it. Above, there is resistance at 1.3320, which has held since September 4. On the downside, there is strong support at the round number of 1.3200.

USD/MXN

Greenback Gains Continues

USD/MXN continues to gain ground. In Thursday’s North American session, the pair is trading at 19.64, up 0.40% on the day.

The Mexican peso is down close to 1.0% this week, as the dollar continues to drive higher. The pair is currently at its highest level since September 6. The U.S. released a GDP report on Thursday, which showed growth in Q2 of 2.0%. This points to a slowdown in the U.S. economy, which could be bearish for risk currencies like the Mexican peso.

Technical Analysis

USD/MXN pushed across stubborn resistance at 19.45 on Thursday and is trying to consolidate above this line. The pair is now within striking distance of resistance at 19.70, which has held firm since September 6. On the downside, there is support at 19.20, which has held since August 1. This line has strengthened, with USD/MXN moving higher this week.