Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Preliminary GDP for March increased by 0.4% monthly and 0.7% annualized. Economists predicted an expansion of 0.1% and 0.3%. Forex traders can compare this to the GDP for February, which rose 0.5% monthly and decreased 0.2% annualized. The UK Preliminary GDP for the first quarter rose by 0.6% quarterly and 0.2% annualized. Economists predicted an expansion of 0.4% and a flat reading of 0.0%. Forex traders can compare this to the fourth quarter GDP, which contracted 0.3% quarterly and 0.2% annualized.
UK Business Investment for the first quarter rose by 0.9% quarterly and decreased by 0.6% annualized. Forex traders can compare this to UK Business Investment for the fourth quarter, which rose by 1.8% quarterly and 2.8% annualized.
UK Construction Output Seasonally Adjusted for March decreased by 0.4% monthly and 2.2% annualized. Economists predicted a rise of 0.8% and a drop of 1.2%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for February, which decreased by 2.0% monthly and 2.0% annualized.
UK Industrial Production for March rose by 0.2% monthly and 0.5% annualized. Economists predicted a fat decrease of 0.2% and an increase of 0.5%. Forex traders can compare this to UK Industrial Production for February, which expanded by 1.0% monthly and 1.0% annualized. UK Manufacturing Production for March accelerated by 0.3% monthly and 2.3% annualized. Economists predicted a decrease of 0.5% and an increase of 1.8%. Forex traders can compare this to UK Manufacturing Production for February, which increased by 1.2% monthly and 2.6% annualized.
The UK Visible Trade Balance for March came in at -£13.970B, and the UK Trade Balance Non-EU at -£3.810B. Forex traders can compare this to the UK Visible Trade Balance for February, reported at -£14.130B, and the UK Trade Balance Non-EU at -£2.780B.
The Canadian Employment Report for April is predicted to show the addition of 20.9K jobs and an Unemployment Rate of 6.2%. Forex traders can compare this to the Canadian Employment Report for March, which showed the addition of -2.2K jobs and an Unemployment Rate of 6.1%.
The forecast for the GBP/CAD turned cautiously bullish after this currency pair stabilized at support. The Tenkan-sen continues to move higher, following a bullish crossover above the flat Tenkan-sen. Volatility could rise after the descending Senkou Span A of the Ichimoku Kinko Hyo Cloud moved below the flat Senkou Span B. Traders should also monitor the CCI, which remains in positive territory with plenty of upside potential. Can bulls control the GBP/CAD and push price action into its horizontal resistance 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 1.7015 to 1.7115 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7135
- Take Profit Zone: 1.7290 – 1.7340
- Stop Loss Level: 1.7040
Should price action for the GBP/CAD breakdown below 1.7100, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7145
- Take Profit Zone: 1.6935 – 1.6990
- Stop Loss Level: 1.7100
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