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

With no major events to kick off the week, the Canadian dollar and Mexican peso are showing little movement. The British pound is showing some volatility and has retracted after ending last week with sharp gains.
Kenny Fisher

GBP/USD

GBP/USD has started the trading week with considerable losses. In Monday’s North American session, the pair is trading at 1.2420, down 0.60%.

Pound Sparkles on Dismal Core Retail Sales

The pound ended the week with sharp gains, as the dollar sagged following mixed consumer spending data in the United States. Retail sales slowed to 0.4% in August, but this beat the forecast of 0.2%. Core retail sales crashed to zero, down from 1.0% a month earlier. Investors are keeping an eye on Wednesday, with the U.K. releasing consumer inflation and the Federal Reserve holding its monthly policy meeting.

Technical Analysis

After sharp gains on Friday, GBP/USD has retracted in Monday trade. The pair easily broke past resistance at 1.2420, but a retracement on Monday has seen GBP/USD drop back to this line. The next resistance line is at 1.2510  – this line was under strong pressure on Friday, but has some breathing room as the pound trades at lower levels. On the downside, 1.2329 is providing support. Traders should note that the pair has been showing volatility since Friday.

GBPUSD 4-Hour Chart

USD/CAD

USD/CAD has started the new trading week with slight gains. Currently, the pair is trading at 1.3246, up 0.24% on the day.

Demand for Canadian Securities Dip

Foreigners purchased less Canadian-denominated assets in July. The total value of such purchases fell by C$1.17 billion, missing the estimate of a gain of C$2.53 billion. This marked the fourth decline in five months, which means there is less demand for the Canadian dollar – clearly not a positive development for the currency.  On Tuesday, Canada releases manufacturing sales, a key report. The markets are expecting a decline of 0.3%, and if the forecast is within expectations, there is a strong likelihood that the loonie will lose ground.

Technical Analysis

USD/CAD continues to exhibit range trade. There is immediate support at 1.3282 – this line was active in Monday’s Asian session, but the pair has lost some ground since then. On the downside, the round number of 1.3200 is not particularly strong, but held last week as USD/CAD showed limited movement.

USDCAD 4-Hour Chart

USD/MXN

It’s been a slow start for the pair on Monday. In the North American session, USD/MXN is trading at 19.43, up 0.14% on the day.

There are no major U.S. releases until Wednesday, so traders shouldn’t expect fundamentals to have much impact on USD/MXN before mid-week trading. As well, the Federal Reserve releases its rate statement on Wednesday, an event which could affect the direction of USD/MXN.

Technical Analysis

After a week of range trade, USD/MXN headed lower on Thursday. The pair broke through support at 19.45 for the first time since August 14. At the same time, the pair has not pushed downwards, so this line remains fluid. If the pair is unable to push back above this line, I would expect it to remain between 19.45 and 19.20, which is the next support line. On the upside, 19.70 is the next line in resistance.

USD/MNX 4-hour Chart

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US