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

Pound Slips Below 1.23

The British pound has declined 1.4% this week, and has managed only one winning daily session in that time. The slide began on Wednesday, as investors reacted negatively to further turmoil on the Brexit front. In a key decision, the U.K. Supreme Court held that Prime Boris Johnson had acted unlawfully when he suspended Parliament earlier this month. The decision has weakened Johnson politically, with barely a month until the U.K, is expected to set sail and depart the EU. If there are further political developments next week, we can expect some volatility from the pound.

USD/MXN

It has been a good week for USD/MXN, which has climbed close to 1.0% this week. However, the pair has retracted on Friday. In the European session, the pair is trading at 19.63, down 0.16% on the day. The U.S. releases key data later in the day, which could impact on the movement of the pair. In particular, investors are braced for a sharp downturn in core durable goods orders, with a forecast of -1.1%. A soft reading could raise risk apprehension and weigh on risk currencies like the Mexican peso.

Technical Analysis

USD/MXN broke above resistance at 19.45 on Thursday and has its sights on resistance at 19.70. This line has held since September 6 but appears vulnerable, especially given the upward movement of the dollar this week. We could see the pair test this line before the end of the day. 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.