GBP/USD, USDGBP/USD, USD/CAD, USD/MXN – North American Session Daily ForecastIt has been a slow start to the new trading week. The Canadian, British and Mexican currencies are all showing limited movement on Monday. With no major releases on Monday, traders can expect a quiet North American session.
GBP/USD is trading sideways on Monday. In the North American session, the pair is trading at 1.2322, down 0.10% on the day. With no key events out of the U.S. on Monday, I expect the pair to remain steady in the North American session. British data started off the week on a sour note. Halifax HPI declined 0.4%, its third decline in four months. The BRC Retail Sales Monitor posted a sharp drop of 1.7%, marking a second straight decline.
GBP/USD has hovered close to the 1.2320 line for the past week. 1.2340 is an immediate resistance line, which was tested last week. On the downside, there is support at 1.2255.
USD/CAD is showing little movement on Monday. In the North American session, the pair is trading at 1.3300, down 0.10% on the day.
U.S. employment numbers were soft, as nonfarm payrolls and wage growth missed their September estimates. Still, investors did not punish the Canadian dollar, which often loses ground when the U.S. posts soft numbers. We could see stronger movement from the Canadian dollar on Tuesday, when Canada releases housing starts and building approvals.
USD/CAD tested support at 1.3320 on Thursday and is attempting to consolidate below this level. Below, there is support at 1.3280 – this line was relevant in the second half of September. On the upside, we find resistance at 1.3360, which was last tested in early September.
USD/MXN suffered its worst week since early September, as the pair fell close to 1.0%. In Monday’s North American session, the pair is trading at 19.54, up 0.07% on the day.
After a strong downward push on Friday, USD/MXN has put some distance between the pair and the 19.70 line. If the peso can continue to strengthen, it could put pressure on support at 19.45. This line was relevant in mid-September, when the peso tested this line but was unable to consolidate below it. On the upside, there is resistance at 19.90, which is protecting the symbolic 20.00 level.