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Not a lot going on in the currency markets today, but fresh data from the U.K. and Canada could bring some attention to GBP/CAD for the session.

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 11074.18 -0.56%
FTSE: 6919.64 -0.73%
S&P500: 2647.13 -0.88%
DJIA: 24553.08 -0.62%
US 10-yr 2.741% -0.041
Bund 10-YR 0.235% -0.024
UK 10-YR: 1.318% -0.006
JPN 10-YR: -0.001% -0.012
Oil: 52.70 -2.04%
Gold: 1281.60 -0.08%
Bitcoin: 3560.70 +0.66%
Etherium: 117.47 +1.09%

Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

  • New Zealand quarterly CPI at 9:45 pm GMT
  • Australia Westpac-MI Leading Index at 11:30 pm GMT

What to Watch: GBP/CAD

GBP/CAD 1-Hour Forex Chart
GBP/CAD 1-Hour Forex Chart

Forex volatility has been pretty light for the Tuesday session, but fresh economic data and a little bit of a shift in global risk sentiment could bring in volatility to GBP/CAD.

From the U.K. we got the latest unemployment and wage data, showing that earnings rose at a faster rate and unemployment dropped to 4.0%, the lowest since 1975. From Canada, we just saw weak manufacturing and wholesale sales data, which seemed to have drawn sellers to the Loonie on the data release.

Another factor that could bring volatility to the pair is oil prices. Oil is Canada’s largest export product and today it is suffering in price thanks to renewed global growth concerns after China posted its slowest growth rate since 1990. The International Monetary Fund also released a lower growth forecast for 2019, that could be contributing to today’s risk-off sentiment.

From a price action standpoint, GBP/CAD has already been swinging higher and did have already have a bullish reaction to today’s events. If you’re in the bull camp, the R:R may be limited at these levels with 1.7300 – 1.7400 as a potentially strong resistance area ahead. It might be wise to wait for a little bit of pullback or scale into a position in case traders take profit after the events.

For the bears, it’s tough to make a case at the moment, but if the market can break below the rising ‘lows’ on some negative Brexit news, or maybe positive news for CAD and/or oil,  which may not come until the Wednesday session on Canadian retail sales data.