GBP/USD has posted slight gains on Friday. In the European session, the pair is trading at 1.2882, up 0.14% on the day.
Crunch Time For Brexit
The spotlight is again on the British parliament, which has already rejected previous Brexit bills. On Saturday, parliament votes on the latest Brexit deal that has been hammered out between Prime Minister Johnson and the European Union. The vote is expected to be tight, but if lawmakers pass the bill, traders can expect further gains from the British pound early next week. The pound has shot up 2.1% this week and is currently sitting on a 21-week high.
The trend for GBP/USD is up and the pair continues to test resistance at 1.2870. Above, there is resistance at 1.2940. On Thursday, The pair put pressure on the symbolic level of 1.3000, and this line could be vulnerable next week if the pound-to-dollar ratio continues to increase.
USD/CAD is flat in Friday’s North American session. Currently, the pair is trading at 1.3138, up 0.01%.
C$ Climbs on Strong Manufacturing Data
Canadian Manufacturing Sales rebounded in August, with a solid gain of 0.8%. This followed two successive declines. In the U.S., the Philly Fed Manufacturing Index fell to 5.6 in September, down sharply from 12.0 in the previous release. The Canadian dollar took advantage and gained 0.50%, climbing to a 4-week high.
After spending most of the week close to the 1.32 level, the pair broke below this line on Thursday and also tested support at 1.3150. This line had not seen action since September 10. With the trend clearly downwards, support at 1.3120 is vulnerable and could be tested as early as the North American session on Friday.
USD/MXN is trading sideways on Friday. In the European session, the pair is trading at 19.20, up 0.04% on the day. The Mexican peso is poised to post gains for a third straight week, and on dropped to 19.13 on Thursday, the pair’s lowest level since the end of July.
USD/MXN tested support at 19.20 earlier this week but has not been able to consolidate below this key support level. Below, we find support at 19.10. The trend for USD/MXN remains down. If this continues, this line could find itself under pressure as early as next week.
This article was originally posted on FX Empire
More From FXEMPIRE:
- China’s Economy Slows but Could Have Been Worse. Next up, Brexit
- Crude Pauses After Punching Above $54
- GBP/USD Daily Forecast – All Eyes on Weekend Vote
- Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 18/10/19
- Oil Price Fundamental Daily Forecast – Chinese Refinery Output Strong Enough to Offset Demand Growth Concerns
- Chances of Fed Rate Cut Rise on Weak U.S. Economic Data, Lack of Progress on Trade Talks