Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for September are predicted to decrease by 0.5% monthly and 5.0% annualized. Forex traders can compare this to UK Retail Sales for August, which dropped 1.6% monthly and 5.4% annualized. UK Core Retail Sales for September are predicted to contract by 0.3% monthly and 4.1% annualized. Forex traders can compare this to UK Core Retail Sales for August, which plunged 1.6% monthly and 5.0% annualized.
UK Public Sector Net Borrowing for September is predicted at £12.30B. Forex traders can compare this to UK Public Sector Net Borrowing for August, reported at £11.06B.
UK Mortgage Approvals for September are predicted at 62.00K. Forex traders can compare this to UK Mortgage Approvals for August, reported at 74.34K. UK Net Mortgage Lending for September is predicted at £4.9B. Forex traders can compare this to UK Net Mortgage Lending for August, reported at £6.14B.
Canadian Retail Sales for August are predicted to rise by 0.2% monthly, and Canadian Core Retail Sales by 0.4% monthly. Forex traders can compare this to Canadian Retail Sales for July, which dropped 2.5% monthly, and to Canadian Core Retail Sales, which contracted 3.1% monthly.
The Canadian New Housing Price Index for September is predicted to increase by 0.2% monthly. Forex traders can compare this to the Canadian New Housing Price Index for August, which rose 0.1% monthly.
Financial markets could close another volatile trading week in the red but finish the week in the green. UK Prime Minister Truss announced her resignation after only 44 days in office, confirming a lack of leadership in the UK as the cost-of-living crisis intensifies. The British Pound will face volatility as traders await the next PM and gauge the potential impact on the UK financial sector.
The forecast for the GBP/CAD turned bearish in the short term amid the leadership change in the UK, while the long-term bullish outlook remains intact. Confirming the lack of bullishness are the flat Kijun-sen and Tenkan-sen. The Ichimoku Kinko Hyo Cloud began to reverse its downtrend and completed a bullish crossover with the ascending Senkou Span B crossing above the flat Senkou Span B. Traders should monitor the CCI following its breakdown from extreme overbought territory. A slide below zero could trigger price action to test its Ichimoku Kinko Hyo Cloud. Can bears force a temporary downside move in a bullish long-term pattern and pressure the GBP/CAD 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 1.5370 to 1.5500 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.5425
- Take Profit Zone: 1.4905 – 1.5025
- Stop Loss Level: 1.5610
Should price action for the GBP/CAD breakout above 1.5500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.5610
- Take Profit Zone: 1.5765 – 1.5830
- Stop Loss Level: 1.5500
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