Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for December came in at 11.7K. Economists predicted a figure of 18.1K. Forex traders can compare this to the UK Jobless Claims Change for November, reported at 0.6K.
The UK Employment Change for the tri-monthly period ending in November came in at 73K, and the ILO Unemployment Rate at 4.2%. Economists predicted a reading of 50K and 4.3%. Forex traders can compare this to the UK Employment Change for October, reported at 55K, and the ILO Unemployment Rate, reported at 4.2%. Average Weekly Earnings for the tri-monthly period ending in November increased 6.5% annualized, and Average Weekly Earnings Excluding Bonuses rose 6.6% annualized. Economists predicted a rise of 6.8% and 6.6%. Forex traders can compare this to Average Weekly Earnings for October, which rose 7.2%, and Average Weekly Earnings Excluding Bonuses, which increased 7.2%.
Canadian Housing Starts for December are predicted at 243.0K. Forex traders can compare this to Canadian Housing Starts for November, which came in at 212.6K.
The Canadian CPI for December is predicted to decrease by 0.3% monthly and increase by 3.4% annualized. Forex traders can compare this to the Canadian CPI for November, which rose by 0.1% monthly and 3.1% annualized. The Canadian CPI-Median for December is predicted to expand by 3.4% annualized, and the Canadian CPI-Trimmed by 3.5% annualized. Forex traders can compare this to the Canadian CPI-Median for November, which rose by 3.4% annualized, and to the Canadian CPI-Trimmed by 3.5% annualized.
Traders will also get two central bank speeches today. Bank of England Governor Bailey and US Federal Reserve member Waller are scheduled to deliver remarks that could inject short-term volatility.
The forecast for the GBP/CAD turned cautiously bearish after this currency pair rallied into its horizontal resistance area. Volatility could increase following a bearish crossover in the Ichimoku Kinko Hyo Cloud. The cloud could widen with the Senkou Span A moving lower and the Senkou Span moving higher. Adding a bullish twist is the ascending Tenkan-sen, which completed a bullish crossover above the flat Tenkan-sen. Traders should also monitor the CCI after it recorded a lower high in extreme overbought territory followed by a breakdown. This technical indicator has plenty of downside potential. Can bears overpower bulls and retake control over the GBP/CAD to drive price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/CAD remain inside the or breakdown below the 1.7055 to 1.7125 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7080
- Take Profit Zone: 1.6760 – 1.6835
- Stop Loss Level: 1.7145
Should price action for the GBP/CAD remain inside the or breakdown below the 1.7055 to 1.7125 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7145
- Take Profit Zone: 1.7285 – 1.7315
- Stop Loss Level: 1.7125
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