As the Brexit clock winds down, forex traders will continue to be careful. While this week should see a Parliament vote on PM Johnson’s Brexit deal, there is no certainty it will take place and what will follow. Plenty of opposition remains to the Brexit bill, and the number crunching by the Tories is in full swing. Economic data today is likely to take a back seat to commentary surrounding Brexit. How will this impact the GBPCAD? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The Canadian elections have left PM Trudeau in a minority government and in a much weaker position than before. Scores of analysts suggest that he needs to be a different type of PM than he was during his first term in order to govern during his second-term. On the economic front, forex traders await Canadian retail sales data. How will the GBPCAD be impacted as Canadian financial markets open for trade? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this currency pair.
Here are the key factors to keep in mind today for British Pound trades:
- UK Public Sector Net Borrowing: UK Public Sector Net Borrowing for September is predicted at £8.9B and UK Public Sector Net Borrowing excluding Banking Groups at £9.7B. Forex traders can compare this to UK Public Sector Net Borrowing for August which was reported at £5.8B and to UK Public Sector Net Borrowing excluding Banking Groups which was reported at £6.4B.
- UK CBI Business Optimism, UK CBI Trends Total Orders and CBI Trends Selling Prices: UK CBI Business Optimism for October is predicted at -30. Forex traders can compare this to UK CBI Business Optimism for September which was reported at -32. UK CBI Trends Total Orders for October are predicted at -25 and UK CBI Trends Selling Prices are predicted at 13. Forex traders can compare this to UK CBI Trends Total Orders for September which were reported at -28 and to UK CBI Trends Selling Prices which were reported at 12.
Here is the key factor to keep in mind today for Canadian Dollar trades:
- Canadian Retail Sales: Canadian Retail Sales for August are predicted to increase by 0.5% monthly and Canadian Retail Sales Less Autos are predicted to increase by 0.1% monthly. Forex traders can compare this to Canadian Retail Sales for July which increased by 0.4% monthly and to Canadian Retail Sales Less Auto which decreased by 0.1% monthly.
Should price action for the GBPCAD remain inside the or breakdown below the 1.6910 to 1.7060 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6970
- Take Profit Zone: 1.6470 – 1.6550
- Stop Loss Level: 1.7090
Should price action for the GBPCAD breakout above 1.7060 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7090
- Take Profit Zone: 1.7310 – 1.7420
- Stop Loss Level: 1.6970
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Online forex trading remains the most popular segment of the global financial market, sign-up now with PaxForex and earn more pips per trade!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
