Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for August increased by 1.0% monthly and 2.5% annualized. Economists predicted a rise of 0.3% and 1.4%. Forex traders can compare this to UK Retail Sales for July, which expanded by 0.7% monthly and 1.5% annualized. UK Core Retail Sales for August rose by 1.1% monthly and 2.3% annualized. Economists predicted an increase of 0.5% and 1.1%. Forex traders can compare this to UK Core Retail Sales for July, which rose by 1.0% monthly and 1.4% annualized.
UK Public Sector Net Borrowing for August was £13.730B and UK Public Sector Net Cash Requirements was £4.875B. Forex traders can compare this to UK Public Sector Net Borrowing for July, reported at £3.100B, and UK Public Sector Net Cash Requirements, reported at £16.905B.
Canadian retail sales for July are predicted to increase by 0.5% monthly, and Canadian core retail sales are predicted to rise by 0.2% monthly. Forex traders can compare this to Canadian Retail Sales for June, which decreased by 0.3% monthly, and Canadian Core Retail Sales, which expanded by 0.3% monthly.
The Canadian Industrial Product Price Index for August is predicted to decrease by 0.3% monthly and the Canadian Raw Materials Price Index is predicted to contract by 2.0% monthly. Forex traders can compare this to the Canadian Industrial Product Price Index for July, which came in flat at 0.0% monthly, and to the Canadian Raw Materials Price Index, which rose by 0.7% monthly.
The forecast for the GBP/CAD turned cautiously bearish after this currency pair spiked higher at an unsustainable rate. The Kijun-sen and the Tenkan-sen move higher but narrow the gap and are vulnerable to a bearish crossover. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are flat and fail to confirm the upside move. They could attract price action lower. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence has formed. A breakdown below 100 could trigger the next leg lower. Can bears regain control over the GBP/CAD and force this currency pair 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 1.8025 to 1.8145 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8085
- Take Profit Zone: 1.7705 – 1.7810
- Stop Loss Level: 1.8225
Should price action for the GBP/CAD break out above 1.8145, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8225
- Take Profit Zone: 1.8395 – 1.8475
- Stop Loss Level: 1.8145
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