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

It has been an uneventful Wednesday session, with the Canadian, Mexican and British currencies showing little movement. With no major U.S. events on the schedule, traders can expect the lack of activity to continue in North American trade.
Kenny Fisher
Globe

GBP/USD is trading sideways on Wednesday. In the North American session, the pair is trading at 1.2877, down 0.05% on the day.

Brexit – Extension, No Deal or Election?

The drama continued in the British parliament on Tuesday, as lawmakers voted down a bill which provided a tight timetable to pass a withdrawal deal by October 31, the date the U.K. is scheduled to leave the European Union. Prime Minister Boris Johnson has threatened to call an election, but he would need a majority in parliament for such a move. The EU appears willing to grant yet another 3-month extension, so the Brexit saga is by no means over.

Technical Analysis

GBP/USD has been tough to predict this week, as the pair has been swinging in both directions. The pair tested the symbolic 1.30 line early in the week, but has retraced. Earlier on Wednesday, GBP/USD tested support at 1.2870. Will the pair be able to sustain the current downtrend? The pound-to-dollar ratio has climbed in October, with GBP/USD gaining an impressive 5.1%.

GBPUSD 1-Day Chart

USD/CAD

USD/CAD is flat in Wednesday’s North American session. Currently, the pair is trading at 1.3093, down 0.01%.

Canadian Wholesales Sales Slide

It has been a disappointing week for Canadian indicators. Retail sales for August were released on Tuesday, and both the headline and core readings showed declines. On Wednesday, Wholesale sales declined by 1.2%, down from a gain of 1.7% in the previous release. Despite the soft numbers, the Canadian dollar has managed to hold its own against the greenback.

Technical Analysis

After posting losses at the start of the week, USD/CAD has leveled off and is range-bound. The pair is putting pressure on support at 1.3070, and this line could break before the end of the week. Below, we find support at 1.3020, which has held since mid-July.

USDCAD 4-Hour Chart

USD/MXN

USD/MXN has posted small losses on Wednesday. In the North American session, the pair is trading at 19.12, down 0.11% on the day.

Technical Analysis

USD/MXN has remained range-bound for a fourth successive day. The pair continues to put pressure on support at 19.10, but has been unable to sustain a downward move below this level. Below, there is support at the round number of 19.00, which has psychological significance. It has held firm since July 31.

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