GBP/USD has posted sharp gains in Thursday’s North American session. In North American trade, the pair is trading at 1.2338, up 1.04% on the day.
British GDP, Mfg. Production Slip
It was a rough day for British indicators, as GDP and manufacturing production both missed their estimates. The monthly GDP report declined by 0.1%, and manufacturing production declined by 0.7%, its second decline in three months. The weak numbers come just a few weeks before the U.K. is scheduled to leave the EU, with investors increasingly nervous that no deal will be reached between London and Brussels. Still, the pound has managed to post gains in the North American session, after disappointing U.S. inflation data.
GBP/USD has posted sharp gains in the North American session, blasting past resistance at 1.2255 and 1.2320. The pair has tested a third resistance level at 1.2366. Above, there is resistance at 1.2420, which has held since September 25. We’ll have to wait to see if the pair retraces and gives up some of these gains, or will the upward movement continue.
USD/CAD is showing its strongest movement in a week and has posted considerable losses on Thursday. In the North American session, the pair is trading at 1.3274, down 0.46% on the day.
The Canadian dollar took advantage of soft U.S. inflation, which lost ground in September. The headline release dropped to a flat 0.0%, while Core CPI dipped to 0.1%. Both readings missed their estimates.
USD/CAD is showing sustained downward movement on Thursday and has broken below support lines at 1.3320 and 1.3280. If the pair can close the day below this last line, it could continue to move lower. We find the next support line at 1.3240, which has held since October 2.
USD/MXN has sustained losses Thursday’s North American session. Currently, the pair is trading at 19.46, down 0.69% on the day. The catalyst for the dollar’s weakness was weak inflation data, as CPI and Core CPI weakened in September, with readings of 0.0% and 0.1%, respectively. Both indicators missed their estimates.
The pair has taken advantage of dollar weakness in the North American session. The support level of 19.46, which has held since September 25, is under strong pressure. If USD/MXN can consolidate below this line, it could make a move towards support at 19.30, which has remained intact since early August. Above, the resistance line at 19.70 has some breathing room as USD/MXN trades at lower levels.
This article was originally posted on FX Empire
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