GBP/USD, USD/CAD, USD/MXN – North American Session Daily ForecastPositive news from Canadian construction and British employment reports, but USD/CAD and GBP/USD shrug. Mexican peso is also range trading
The British pound is showing limited movement on Tuesday, as GBP/USD is trading at 1.2363 in North American trade, up 0.13% on the day.
British Wage Growth Surges
British employment numbers were positive on Tuesday. The highlight was a wage growth in July, which climbed 4.0%. This beat the estimate of 3.7% and marked the strongest gain since 2010. Unemployment rolls showed little change, rising to 28.2 in August, up from 28.0 thousand. The unemployment rate dipped lower to 3.8%, down from 3.9%. The country’s employment picture remains bright, despite all the concerns over Brexit.
GBP/USD broke through resistance at 1.2329 on Monday and is currently trading just above this line. Still, the possibility of the pound retracing back below this line remains. If the pair can muster some additional gains, it has room to climb all the way to 1.2420, which is a major resistance line.
On the downside, 1.2329 is providing immediate support. 1.2180 is the next support level.
USD/CAD is down slightly on Tuesday, as the pair is having a quiet week. In the North American session, the pair is trading at 1.3550, down 0.16% on the day.
Construction Data Improves in August
There was positive news from Canada’s construction sector. Housing starts improved to 227 thousand in August, up from 222 thousand a month earlier. Building Starts rebounded in July with a 3.0% gain. This came after two straight declines. Strong construction numbers could have a ripple effect on other parts of the economy, such as the housing sector.
USD/CAD continues to show range trading this week. This lack of activity could continue, with much depending on whether support at 1.3140 can hold. If the pair can break through this line, I would expect the Canadian dollar to gain strength and move closer to the 1.31 level. On the upside, the round number of 1.32 is the next resistance line.
USD/MXN continues to show limited movement this week. The pair is trading at 19.52 in the North American session, down 0.20% on the day. These losses have erased the gains seen on Monday.
After sharp gains last week, the USD/MXN has leveled off as it stays close to 19.50. Will the pair continue to range trade? If the Mexican peso gains any strength, it could test immediate support at 19.45, which has held since August 12. If the pair can break below this level, I would expect could show some stronger downward movement from the pair.
On the upside, 19.70 switched to a resistance role, as the USD/MNX headed to lower ground. There is support is at 19.45, which has held since August 12.