Inflation data out of the UK will be in focus as more Brexit details will be announced. Economists expect a mild up-tick in inflation for September. The British Pound has rallied sharply to four month highs as optimism about a Brexit deal rose. The Bank of England will monitor inflation closely and is expected to increase interest rates as soon as next year while other central banks are easing monetary policy. How will today’s inflation data impact the GBPCAD? Today’s fundamental analysis will take a look at price action in both directions.

Forex traders will also get Canadian inflation data which is expected to show a monthly decrease. While this won’t go unnoticed, most traders will likely await the outcome of Canadian elections which will be held next Monday, October 21st 2019. Expectations call for current PM Trudeau to remain in power, but he has been faced with the so-called “brownface scandal”.The GBPCAD has rallied sharply on the back of a strong pound, will bulls push higher or are bears going to force a reversal? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.