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GBP/USD, USDGBP/USD, USD/CAD, USD/MXN – North American Session Daily Forecast

Kenny Fisher

GBP/USD has posted slight losses on Friday. In the European session, the pair is trading at 1.2313, down 0.22% on the day.

British data has been soft this week. GDP declined by 0.2% in the second quarter and September PMIs indicated contractions in the manufacturing, construction and services sectors. Still, the pound has managed to post slight gains this week.  U.S. employment numbers disappointed. Nonfarm payrolls rose to 136 thousand, shy of the estimate of 145 thousand. Wage growth fell to a flat 0.0%, down from 0.4% in the previous release.

Technical Analysis

GBP/USD moved higher on Thursday and broke above resistance at 1.2320 and 1.2360. The pair briefly pushed into 1.24 territory before retracting. On Friday, 1.2340 is an immediate resistance line and could be tested during the day.

GBP/USD 4-Hour Chart

USD/CAD

USD/CAD has posted small losses on Friday. In North American trade, the pair is trading at 1.3321, down 0.12% on the day. With key events on both sides of the border on Friday, we could see some movement from USD/CAD in the North American session. Canada’s trade deficit improved slightly to C$1.0 billion, beating the estimate of C$1.1 billion. Over in the U.S., employment numbers were weak. Nonfarm payrolls fell to 145 thousand, while wage growth slowed to just 0.0%.

Technical Analysis

USD/CAD continues to test resistance at the 1.3320 line on Friday. On the upside, there is resistance at 1.3360. There is support at 1.3280.

USD/CAD 4-Hour Chart

USD/MXN

USD/MXN continues to lose ground. In Friday’s North American session, the pair is trading at 19.58, down 0.37% on the day.

Technical Analysis

The 19.70 line remains relevant and has switched to immediate resistance as the pair lost ground on Thursday and has posted further losses in Friday trade. The main trend is down, as the peso continues to gain ground. Above, there is resistance at 19.90, which is protecting the symbolic 20.00 level. On the downside, there is support at 19.20, which has held since August 1.

This article was originally posted on FX Empire

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