During yesterday’s trading session GBP/CAD traded within the range of 1.8313-1.8488 and closed at 1.8343.
At 6:48 GMT today GBP/CAD was losing 0.11% for the day to trade at 1.8318. The pair touched a daily low at 1.8316 at 6:09 GMT.
Fundamental view
Canada
The number of the employed people in Canada probably increased by 21 300 last month compared to March, according to the median forecast by experts. In March compared to February the number of the employed rose by 42 900. Creation of new job positions is considered of utmost importance for consumer spending. In case employment in the country increases more than expected, the loonie would be supported.
The rate of unemployment in Canada probably remained unchanged at 6.9% in April. Lower than expected unemployment would have a bullish effect on Canadian dollar. Statistics Canada is expected to release its official report at 12:30 GMT.
United Kingdom
Annualized industrial output in the United Kingdom probably expanded 2.4% in March, following another 2.7% increase during the preceding month. In monthly terms, industrial production probably decreased 0.1% in March, after a 0.9% gain in the previous month. The index presents the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.
UK’s annualized manufacturing production, a short-term indicator which accounts for almost 80% of nation’s industrial output, probably expanded 2.9% in March. In February manufacturing output rose at an annualized pace of 3.8%. In monthly terms, production probably increased 0.3% during March. As it is a key component of country’s Gross Domestic Product, in case manufacturing production expanded more than projected in February, this would have a bullish effect on the sterling. The Office for National Statistics (ONS) will release the official figures at 8:30 GMT.
Technical view
According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8450, it will probably continue up to test 1.8556. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8625.
If GBP/CAD manages to breach the first key support at 1.8274, it will probably continue to slide and test 1.8206. With this second key support broken, the movement to the downside will probably continue to 1.8100.