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

The pound continues to lose ground on Tuesday and has fallen close to the 1.22 line. The Canadian and British currencies are showing little movement.
Kenny Fisher
Foreign currency banknotes

GBP/USD is under pressure, as the pair has lost close to 1.0% so far this week. In Tuesday’s North American session, the pair is trading at 1.2221, down 0.54% on the day. U.S. inflation levels have been weak, and the Producer Price Index reports for September were dismal. Both the headline and core releases posted declines of 0.3%, missing expectations.

Technical Analysis

GBP/USD pushed below support at 1.2320 on Monday. The downward movement has continued on Tuesday, with the pair testing support at 1.2255. The main trend is down, with the next line of support at 1.2180.

GBP/USD 4-Hour Chart

USD/CAD

USD/CAD continues to show little movement this week. In the North American session, the pair is trading at 1.3313, up 0.06% on the day.

Loonie Yawns on Mixed Construction Numbers

Canada released mixed construction numbers on Tuesday. Housing starts fell to 221 thousand in September, down from 227 thousand a month earlier. There was more positive news from building permits, which jumped 6.1% in August, crushing the estimate of 2.3%. The Canadian dollar showed little reaction to the mixed releases.

Technical Analysis

USD/CAD remains range-bound this week. The pair tested resistance at 1.3320 earlier in the day. Above, we find resistance at 1.3360, which was last tested in early September. On the downside, there is support at 1.3280 – this line was relevant in the second half of September.

USD/CAD 4-Hour Chart

USD/MXN

USD/MXN is trading sideways in Tuesday trade. In the North American session, the pair is trading at 19.55, down 0.07% on the day.

Technical Analysis

After a strong downward push on Friday from USD/MXN, the downward movement has stalled this week. There is immediate resistance at the 19.70 line. On the upside, there is resistance at 19.90, which is protecting the symbolic 20.00 level. 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.

USD/MXN 4-Hour Chart

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