Pound-to-Canadian dollar rate forecast for 5 days: ever-increasing



Canadian dollar

Image © Adobe Stock

– GBP / CAD has recovered from NAFTA risk & # 39; s and Brexit progress

– The pair can reverse the down trend in the short term

– The most important release for the Pond is sectoral PMI data and for CAD this is the meeting of the Bank of Canada

The pound-to-Canadian exchange rate is quoted at 1.6894 on the interbank market at the time more than a penny is written from the price of 1.6730 of the previous week.

The Pound has rebounded against the Canadian Dollar on the increased progress in the Brexit talks, while the Loonie lost ground after a failure to secure a NAFTA deal, led to fears of increased tariffs between the trade between the USA and Canada.

From a technical point of view, the pair appears to be in equilibrium to reverse the downtree in the medium term after forming a bullish double reversal pattern at the root of its falling channel.

GBP to CAD daily "width =" 600

The exchange rate then rose to a peak of 1.6987, after which he retires to 1.6894 on Friday.

The pair will probably continue to collect if the exchange rate can provide more confirmation of the uptrend by breaking above 1.6987 week highs.

However, such a break is expected to lead to a limited increase, but to a target of 1.7075 where the 50-day MA is located.

Important moving averages tend to act as dynamic support and resistance levels where a trending exchange rate often cuts, declines or reverses, so this makes it the ideal place to go to the next target.

The constructive RSI momentum in the lower panel, which gives a strong impetus to the recent movement higher, supports the possibility of a higher expansion.

GBP to CAD September "width =" 600

The increasing potential for the pair is less clear in the 4-hour overview. The pair has formed higher peaks and troughs, but not two clearly higher heights and higher lows that would be needed for stronger confirmation of a shorter trend reversal.

After the most recent relapse, however, a break above 1.6987 highlights would point to peak and trough progression was higher with two higher highs and lows, indicating that the up-trend was now dominant.

GBP to CAD weekly "width =" 600

The weekly chart shows another reason that disturbs the couple to rise further.

The pair has fallen in an ABCD pattern since the March highs and this seems complete now, as legs A-B and C-D seem to have approximately the same length.

Once the pattern has been completed, the market will start to rise with a new move higher, which is possibly now underway.

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Stand up 5% more foreign currency for international payments by using a specialized provider to get closer to real market interest rates and avoid the gaping spreads charged by your bank when providing currency. Find out more here

The Canadian Dollar: What to Watch this Week

NAFTA negotiations aside, there are a number of potential drivers behind the Canadian dollar on the calendar.

The main event for the Canadian Dollar in the coming week is the meeting of the Bank of Canada (BOC) on Wednesday 5 September at 3 pm B.S.T.

Surprisingly flat economic growth in June has raised doubts about the likelihood that the BOC will raise interest rates during the September meeting.

"The in-line GDP figures, and flat June, are sufficient reason for the Bank of Canada to wait until October to walk again, especially if we do not get a clear and favorable result for NAFTA and the tariffs for steel / aluminum are in place, "says Avery Shenfeld, chief economist at the Toronto headquarters CIBC Capital Markets.

The Canadian dollar is sensitive to GDP data because economic growth leads to higher inflation, forcing central banks to raise interest rates.

Higher relative interest rates support currencies because the larger inflow of foreign capital is attracted by the promise of higher returns.

In view of the interest rate increase in July, an interest rate increase at the Wednesday meeting in September would mean two interest rate increases in a row. However, it is unlikely that this will happen, as BOC has said it wants to raise rates "gradually", analysts say Royal Bank of Canada.

The main hard data publication for the Canadian dollar in the coming week is labor market data, which is expected to show an increase of 5k in August when it is released on Friday at 1.30 pm. B.S.T.

The unemployment rate is at the same time and is expected to increase a base point to 5.9% and the participation rate to 65.4%.

The Canadian data on labor has been very good lately, with an unexpected rise in July of 54.1 k and further unexpected gains would probably support the Loonie, although the NAFTA risks are probably more urgent at the moment.

These appear to have deteriorated after discussions between Canada and the US came to a standstill last week, with Prime Minister Trudeau rejecting US demands to refuse Canada for US dairy products.

Trump further bothered the markets after saying that there was "no political need" to conduct negotiations with Canada.

The Pound this week: the calendar is getting warm again

Be careful, politicians come back from their summer holidays; cue the inevitable bickering on how Brexit should look like.

That is why the risks increase again and Sterling can be sensitive to remarkable developments. Of course it is politically impossible to call, so we will look out for the unexpected.

However, the calendar has a number of economic expenses to view when the new month begins.

The most important releases that will be shown in the coming week are data on purchasing, management indices and purchasing indicators (PMI) for August.

PMIs deliver relevant, up-to-date data that often provides a reliable guide to future, broader economic trends.

The PMI of the processing industry is expected to drop from a low of 3 months from 54.0 in July to 53.8 in August, when it will be free at 9:30 on Monday 3 September.

Manufacturing industry PMI has recently declined and further larger than expected weakness could weigh Sterling, but as long as it remains above 50 – the level that distinguishes the expansion of contraction – it is unlikely that it will significantly affect the exchange rate.

GBP production "width =" 600

Image courtesy of trading economics

The PMI for construction is less significant than the other two, but is released at the same time on Tuesday and is expected to drop to 54.9 in August from 55.8 in July.

Services PMI is the most important release of the three because this sector accounts for more than 80% of the British economy – economists expect an increase to 53.8 in August from 53.5 earlier, when it is Wednesday at 9.30 am. It shows a more resilient, volatile progression.

GBP services PMI & # 39; s "width =" 600
Image courtesy of trading economics.

Another major release for the pound in the coming week is the retail sales monitor of the British Retail Consortium (BRC), which is a useful guiding indicator for broader street sales.

Halifax's house price data for August are expected to show a decrease of -0.2% compared to July, but an increase of 3.9% compared to August last year when it is released on Friday at 8.30 am.

Although house price fluctuations may warn economists of the onset of a deeper economic malaise affecting Sterling, they have remained resilient recently and continue to rise generally.

Housing prices "width =" 600
Image courtesy of trading economics.

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Stand up 5% more foreign currency for international payments by using a specialized provider to get closer to real market interest rates and avoid the gaping spreads charged by your bank when providing currency. Find out more here


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Pound-to-Canadian dollar rate forecast for 5 days: ever-increasing



Canadian dollar

Image © Adobe Stock

– GBP / CAD has recovered from NAFTA risk & # 39; s and Brexit progress

– The pair can reverse the down trend in the short term

– The most important release for the Pond is sectoral PMI data and for CAD this is the meeting of the Bank of Canada

The pound-to-Canadian exchange rate is quoted at 1.6894 on the interbank market at the time more than a penny is written from the price of 1.6730 of the previous week.

The Pound has rebounded against the Canadian Dollar on the increased progress in the Brexit talks, while the Loonie lost ground after a failure to secure a NAFTA deal, led to fears of increased tariffs between the trade between the USA and Canada.

From a technical point of view, the pair appears to be in equilibrium to reverse the downtree in the medium term after forming a bullish double reversal pattern at the root of its falling channel.

GBP to CAD daily "width =" 600

The exchange rate then rose to a peak of 1.6987, after which he retires to 1.6894 on Friday.

The pair will probably continue to collect if the exchange rate can provide more confirmation of the uptrend by breaking above 1.6987 week highs.

However, such a break is expected to lead to a limited increase, but to a target of 1.7075 where the 50-day MA is located.

Important moving averages tend to act as dynamic support and resistance levels where a trending exchange rate often cuts, declines or reverses, so this makes it the ideal place to go to the next target.

The constructive RSI momentum in the lower panel, which gives a strong impetus to the recent movement higher, supports the possibility of a higher expansion.

GBP to CAD September "width =" 600

The increasing potential for the pair is less clear in the 4-hour overview. The pair has formed higher peaks and troughs, but not two clearly higher heights and higher lows that would be needed for stronger confirmation of a shorter trend reversal.

After the most recent relapse, however, a break above 1.6987 highlights would point to peak and trough progression was higher with two higher highs and lows, indicating that the up-trend was now dominant.

GBP to CAD weekly "width =" 600

The weekly chart shows another reason that disturbs the couple to rise further.

The pair has fallen in an ABCD pattern since the March highs and this seems complete now, as legs A-B and C-D seem to have approximately the same length.

Once the pattern has been completed, the market will start to rise with a new move higher, which is possibly now underway.

Advertisement
Stand up 5% more foreign currency for international payments by using a specialized provider to get closer to real market interest rates and avoid the gaping spreads charged by your bank when providing currency. Find out more here

The Canadian Dollar: What to Watch this Week

NAFTA negotiations aside, there are a number of potential drivers behind the Canadian dollar on the calendar.

The main event for the Canadian Dollar in the coming week is the meeting of the Bank of Canada (BOC) on Wednesday 5 September at 3 pm B.S.T.

Surprisingly flat economic growth in June has raised doubts about the likelihood that the BOC will raise interest rates during the September meeting.

"The in-line GDP figures, and flat June, are sufficient reason for the Bank of Canada to wait until October to walk again, especially if we do not get a clear and favorable result for NAFTA and the tariffs for steel / aluminum are in place, "says Avery Shenfeld, chief economist at the Toronto headquarters CIBC Capital Markets.

The Canadian dollar is sensitive to GDP data because economic growth leads to higher inflation, forcing central banks to raise interest rates.

Higher relative interest rates support currencies because the larger inflow of foreign capital is attracted by the promise of higher returns.

In view of the interest rate increase in July, an interest rate increase at the Wednesday meeting in September would mean two interest rate increases in a row. However, it is unlikely that this will happen, as BOC has said it wants to raise rates "gradually", analysts say Royal Bank of Canada.

The main hard data publication for the Canadian dollar in the coming week is labor market data, which is expected to show an increase of 5k in August when it is released on Friday at 1.30 pm. B.S.T.

The unemployment rate is at the same time and is expected to increase a base point to 5.9% and the participation rate to 65.4%.

The Canadian data on labor has been very good lately, with an unexpected rise in July of 54.1 k and further unexpected gains would probably support the Loonie, although the NAFTA risks are probably more urgent at the moment.

These appear to have deteriorated after discussions between Canada and the US came to a standstill last week, with Prime Minister Trudeau rejecting US demands to refuse Canada for US dairy products.

Trump further bothered the markets after saying that there was "no political need" to conduct negotiations with Canada.

The Pound this week: the calendar is getting warm again

Be careful, politicians come back from their summer holidays; cue the inevitable bickering on how Brexit should look like.

That is why the risks increase again and Sterling can be sensitive to remarkable developments. Of course it is politically impossible to call, so we will look out for the unexpected.

However, the calendar has a number of economic expenses to view when the new month begins.

The most important releases that will be shown in the coming week are data on purchasing, management indices and purchasing indicators (PMI) for August.

PMIs deliver relevant, up-to-date data that often provides a reliable guide to future, broader economic trends.

The PMI of the processing industry is expected to drop from a low of 3 months from 54.0 in July to 53.8 in August, when it will be free at 9:30 on Monday 3 September.

Manufacturing industry PMI has recently declined and further larger than expected weakness could weigh Sterling, but as long as it remains above 50 – the level that distinguishes the expansion of contraction – it is unlikely that it will significantly affect the exchange rate.

GBP production "width =" 600

Image courtesy of trading economics

The PMI for construction is less significant than the other two, but is released at the same time on Tuesday and is expected to drop to 54.9 in August from 55.8 in July.

Services PMI is the most important release of the three because this sector accounts for more than 80% of the British economy – economists expect an increase to 53.8 in August from 53.5 earlier, when it is Wednesday at 9.30 am. It shows a more resilient, volatile progression.

GBP services PMI & # 39; s "width =" 600
Image courtesy of trading economics.

Another major release for the pound in the coming week is the retail sales monitor of the British Retail Consortium (BRC), which is a useful guiding indicator for broader street sales.

Halifax's house price data for August are expected to show a decrease of -0.2% compared to July, but an increase of 3.9% compared to August last year when it is released on Friday at 8.30 am.

Although house price fluctuations may warn economists of the onset of a deeper economic malaise affecting Sterling, they have remained resilient recently and continue to rise generally.

Housing prices "width =" 600
Image courtesy of trading economics.

Advertisement
Stand up 5% more foreign currency for international payments by using a specialized provider to get closer to real market interest rates and avoid the gaping spreads charged by your bank when providing currency. Find out more here


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