Here are the key factors to keep in mind today for British Pound trades:
- UK Trade Data: Forex traders will get a look at the UK’s trade deficit for May. This is going to have an impact on the British Pound which has been under an increase in selling pressure. Economists expected the UK to report a trade deficit of £2,150 million in May which would have been above the trade deficit of £1,834 million which was reported in April. The released trade deficit came in at £393 billion which send the British Pound into rally mode. The non-EU trade deficit was expected to rise to £2,800 in May from the trade deficit of £2,399 million reported in May. The actual non-EU trade deficit decreased to £1,570 million and further increased the overall bullishness in the British Pound. The visible trade deficit was expected to increase to £9,700 million in May according to economists. This can be compared to the visible trade deficit of £9,387 million. The released report showed a visible trade deficit of £8,000 million.
- UK Construction Output: The UK construction sector fared far worse than what economists were looking for. Expectations called for a monthly increase of 0.8% in May and for a year-over-year increase of 3.1%. Forex traders can compare this to the 0.5% monthly contraction which was reported in April and the year-over-year increase of 1.8%. Today’s report on UK construction Output showed an unexpected monthly contraction of 1.3% in May and a year-over-year increase of only 1.3%. This has dampened the bullishness in the British Pound to a degree.
Here is the key factor to keep in mind today for Canadian Dollar trades:
- Canadian Employment Report: The Canadian Dollar could come under a new wave of selling pressure during the US trading session as the labor market is expected to show a contraction in jobs for June. Economists expect 10,000 job losses with an increase in the unemployment rate to 6.9%. Forex traders can compare this to the 58,900 job additions which were reported in May when the unemployment rate was reported at 6.8%. The labor force participation rate may have remained unchanged at 65.9% and forex traders should look for the composition of the job losses. May was a combination of 30,900 full-time positions and 27,900 part-time positions.
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