Positive expectations for the upcoming U.K. general elections could keep sterling supported throughout the session, especially if polls continue to confirm the Tories’ lead.
Fresh Market Headlines & Economic Data:
- White House’s Kushner: “Pretty good progress” on USMCA
- House Speaker Pelosi warns that USMCA is “not quite finished yet”
- RBA Governor Lowe: Australian GDP outcome mostly as expected
- Australia’s Q3 HPI up 2.4% from earlier 0.7% drop, 0.5% consensus
- Australian NAB business confidence index slipped from 2 to 0 in Nov
- Chinese CPI up from 3.8% to 4.5% y/y in Nov
- Chinese PPI down 1.4% vs. projected 1.5% slide and earlier 1.6% drop
- Asian shares in the red while waiting for more tariffs clues
Upcoming Potential Catalysts on the Forex Calendar:
- French industrial production and private payrolls due 7:30 am
- U.K. monthly GDP and manufacturing production at 10:30 am
- German and euro zone ZEW economic sentiment indices at 11:00 am
What to Watch: GBP/CAD
With a couple of medium-tier reports coming up from the U.K. and the prospect of more opinion polls confirming a lead by the Tories, sterling could be poised for more upside in the next few hours.
On the flip side, the Loonie could return some of its recent wins as risk appetite has been shaky on account of trade jitters today.
GBP/CAD is trending higher on its 1-hour chart and looks prime for a pullback to the rising trend line support, which lines up with the 50% Fib. At the same time, stochastic is starting to turn higher from the oversold region to reflect a return in bullish pressure.
A long position at the 1.7375 level with a stop of over a hundred pips, which is the pair’s average daily movement, could be enough to weather volatility for the session.