Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for October was flat at 0.0% monthly and rose by 4.6% annualized. Economists predicted an increase of 0.1% and 4.8%. Forex traders can compare this to the UK CPI for September, which expanded by 0.5% monthly and 6.7% annualized. The UK Core CPI for October rose by 0.3% monthly and 5.7% annualized. Economists predicted an increase of 0.4% and 5.8%. Forex traders can compare this to the UK CPI for September, which accelerated by 0.5% monthly and 6.1% annualized.
The UK PPI Input for October increased by 0.4% monthly and decreased by 2.6% annualized. Economists predicted a rise of 0.2% and a drop of 3.3%. Forex traders can compare this to the UK PPI Input for September, which expanded by 0.6% monthly and contracted by 2.1% annualized. The UK PPI Output for October rose by 0.2% monthly and dropped by 0.6% annualized. Economists predicted a rise of 0.1% and a decrease of 1.0%. Forex traders can compare this to the UK PPI Output for September, which expanded by 0.6% monthly and 0.2% annualized. The UK PPI Core Output for October increased by 0.1% monthly and 1.6% annualized. Forex traders can compare this to the UK PPI Core Output for September, which was flat at 0.0% monthly and rose by 0.8% annualized.
The UK RPI for October decreased by 0.2% monthly and increased by 6.1% annualized. Economists predicted a rise of 0.1% and 6.4%. Forex traders can compare this to the UK RPI for September, which accelerated by 0.5% monthly and 8.9% annualized. The UK Core RPI for October dropped by 0.3% monthly and rose by 4.8% annualized. Forex traders can compare this to the UK Core RPI for September, which expanded by 0.4% monthly and 7.6% annualized.
Canadian Manufacturing Sales for September are predicted to decrease by 0.1% monthly. Forex traders can compare this to Canadian Manufacturing Sales for August, which rose 0.7% monthly.
Canadian Wholesale Trade Sales for September are predicted flat at 0.0% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for August, which rose 2.3% monthly.
The forecast for the GBP/CAD turned cautiously bearish after this currency pair advanced into its horizontal resistance area. The Kijun-sen and the Tenkan-sen have flatlined, suggesting a loss of upside momentum. The Ichimoku Kinko Hyo Cloud has narrowed and could attract price action to the downside. Traders should also monitor the CCI after setting a higher high in extreme overbought territory. A breakdown below 100 could trigger the expected sell-off. Can bears regain control over the GBP/CAD and force 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 1.7015 to 1.7115 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7070
- Take Profit Zone: 1.6610 – 1.6730
- Stop Loss Level: 1.7145
Should price action for the GBP/CAD breakout above 1.7115, 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: 1.7115
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
