UK Public Sector Net Borrowing for February is predicted at £0.7B, and UK Public Sector Net Borrowing excluding Banking Groups at £0.8B. Forex traders can compare this to UK Public Sector Net Borrowing for January, which was reported at -£10.5B and to UK Public Sector Net Borrowing excluding Banking Groups, which was reported at -£9.8B. Canadian Retail Sales for January are predicted to increase by 0.3% monthly, and Canadian Retail Sales Less Autos are predicted to increase by 0.2% monthly. Forex traders can compare this to Canadian Retail Sales for December, which were reported flat at 0.0% monthly, and to Canadian Retail Sales Less Auto, which increased by 0.5% monthly.
The Bank of England delivered another emergency interest rate cut yesterday, lowering the rate by 15 basis points to 0.10%. After the GBP/CAD plunged to a multi-year low, price action recovered, and the forecast is slowly turning bullish. The Canadian economy is fiscally in a weak position, while the UK is operating from a significantly stronger foundation. Will bulls manage a recovery? 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 breakout above the 1.6720 to 1.6920 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6800
- Take Profit Zone: 1.7375 – 1.7475
- Stop Loss Level: 1.6670
Should price action for the GBP/CAD breakdown below 1.6720 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6670
- Take Profit Zone: 1.6400 – 1.6470
- Stop Loss Level: 1.6720
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.