Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

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?

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.

UK consumer confidence as well as as the Lloyds Business Barometer decreased further in August as Brexit is nearing and uncertainty over which type of Brexit will be delivered remains. The UK labor market remains strong and wage gains are at decade highs, economists expect that consumer borrowed at a stable rate as the housing market shows signs of a bottom. The British Pound has been drifting higher after bouncing off of support levels which pushed the GBPCAD into its next resistance level. Is bullish momentum strong enough for a breakout or will bears force a reversal?

As the race for the next British PM is in the headlines and with Brexit uncertainty overshadowing other economic developments, many forex traders may ignore key inflation data which will be released this morning. The Bank of England has entered into a stealthy hawkish mode for an interest rate increase with commentary that Brexit will not dictate monetary policy and that elevated inflationary pressures would warrant an increase in interest rates for long-term stability of the economy.

Here is the key factor to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here is the key factor to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:  

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here is the key factor to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades: