Keep your eyes on GBPCAD—new trading prospects are emerging!
The GBPCAD currency pair, representing the exchange rate between the British pound and the Canadian dollar, is the most critical indicator of economic interaction between the UK and Canada. The Canadian dollar is heavily influenced by fluctuations in commodity prices, particularly oil, due to Canada's status as a major exporter. Economic policy decisions and indicators such as employment levels, GDP growth, and trade balance are also important. On the other hand, the British Pound is influenced by factors such as changes in UK monetary policy, as well as economic reports such as inflation, employment, and consumer spending data.
Canada Consumer Price Index (CPI) MoM, Aug 20, 14:30 (GMT+2)
Canada's Consumer Price Index (CPI) is forecast to rise by 0.2%, recovering from a previous decline of -0.1%. If the CPI exceeds this forecast, indicating an increase in inflationary pressures, this could cause the Bank of Canada to consider tightening monetary policy. This would likely lead to a stronger Canadian Dollar and a decline in the GBPCAD pair. Conversely, the Canadian Dollar could weaken if the CPI exceeds the expected 0.2%, indicating less inflationary pressure than expected. This would potentially lead to a rise in the GBPCAD pair, reflecting lower confidence in the strength of the Canadian economy.
Last time on April 16, 2024, Canadian CPI came in below expectations, causing GBPCAD to surge!
UK Manufacturing Purchasing Managers Index (PMI), Aug 22, 10:30 (GMT+2)
The UK manufacturing PMI is forecast to decline slightly to 51.5 from 52.1. If the PMI beats expectations, demonstrating the resilience of the manufacturing sector, this could boost investor confidence in the UK economy and strengthen the Pound. A stronger Pound is likely to lead to a higher GBPCAD exchange rate. On the other hand, if the PMI falls short of expectations, indicating a weakening manufacturing sector, this could undermine confidence in the Pound. Such a scenario will likely lead to a fall in the GBPCAD pair, as the pound will lose ground.
In the Daily timeframe, GBPCAD, in a long-term uptrend, formed a rising channel pattern. The price bounced off the trend line and is consolidating near 161.8 Fibonacci, creating two possible scenarios.
If the bulls push the price above 1.7630, the target will be 1.7820. However, if the price bounces off the resistance, it could fall to the trend line and then rally upwards;
Otherwise, if GBPCAD breaks the trend line and falls below 1.7560, it will reach the support at 1.7450;
