Home Daily Analysis Forex Market Overview Daily FX Brief, Aug 09 – Trading U.K’s GDP and Canadian Employment...

Daily FX Brief, Aug 09 – Trading U.K’s GDP and Canadian Employment Report!

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A day before, the U.S. dollar was bearish against all of its major pairs with the exception of the single currency Euro. On the economic data front, Initial Jobless Claims reached 209K in the week ending August 3 (estimated 215K) vs 217K in the previous week. Wholesale Inventories were steady in June (estimated 0.2%) vs +0.2% in the prior month.

The single currency Euro was bearish against all of its major pairs. In Europe, the Bank Of France forecast a 0.3% French GDP growth for 3Q vs +0.2% in 2Q.  The Australian dollar was bullish against all its major pairs.

Economic Events to Watch Today

 

 

 

GBP/USD – Daily Outlook

The GBP/USD currency pair slightly flat due to United Kingdom Q2 GDP

At the beginning of the day, the GBP/USD currency pair slightly decreased around 1.2140 shows little reaction due to British GBP data. With the summer break in the United Kingdom Parliament holding back the Brtish legislators from significant drama.

Whereas increasing thoughts of the United Kingdom PM Boris Johnson’s formal statement regarding general election just following the Brexit day looks like they are making the opposition; and some of the Tory rebels, worried about they are preparing to hold a no-confidence vote during early September.

AT the United States a China trade front, the US-China trade delay keeps moved market into the recession anxieties with the range of ten-year and two-year Treasury yields of the United States probably heading towards opposite technically indicating an international recession.

Moreover, all investors will keep an eye on the economic calendar where the preliminary reading of the UK’s second-quarter Gross Domestic Product joins Manufacturing Production of June, industrial product, Goods Trade Balance and at the end monthly GDP data.

UK GDP (quarterly) – Friday, 8:30 GMT

This Gross Domestic Product (GDP) release is for the complete second quarter of the year, making it more impactful than the monthly statements. The British economy has grown by a strong velocity of 0.5% in the first quarter of 2019 – but this extension was essentially driven by preparations for Brexit – that did not happen at the original March 29th date.


 

The GBP/USD continues on the Recovery track, Ignores no-Brexit deal anxieties. Today in the early market, the GBP/USD currency pair continues trading at the recovery track despite the no-Brexit deal. The pair ignore the concerns of the no-Brexit deal and remain safe as it pulls back to 1.2160.

Daily Support and Resistance

R3: 1.229
R2: 1.2221
R1: 1.2182
Key Trading Level: 1.2151
S1: 1.2113
S2: 1.2082
S3: 1.2013

GBP/USD – Trading Tips

Consider staying bearish below 1.2160 while having a target of around 1.2082 today.

USD/CAD – Daily Outlook

Besides, GBP/USD the second most volatile currency pair is likely to be USD/CAD as investors are expecting labour market report from Canada. Mostly, the report is given huge importance as drives sharp volatile on release. Here’s what to expect from the Canadian employment report.

Canadian Jobs Report – Friday, 12:30 GMT

Canada’s employment data normally have to contend with the US Non-Farm Payrolls for recognition. The economy dropped 2.2K positions in June, after series of upbeat months of solid gains. A return to extension is expected in the data for June. The unemployment rate may persist at 5.5% seen previously.

Whereas wage growth has a growing impact and should be eyed as well.


 

On the technical side, the negative formation points lower and so this morning’s call is a Sell but leaving room to Sell any Rally to 1.3247, Asia’s high. The risk is 1.3271, intraday Marabuzo line, with an immediate target of 1.3201, the 13-day moving average. A move through that point then exposes sentiment to 1.3177, this week’s low, and 1.3151, July 31st open.

Daily Support and Resistance
R3: 1.3434
R2: 1.3373
R1: 1.334
Key Trading Level: 1.3312
S1: 1.3279
S2: 1.3251
S3: 1.3191

USD/CAD – Trading Tips

For the moment, the USD/CAD may taka a bullish turn to test the previously violated bullish channel support become resistance level of 1.3265. We can find a good place to stay bearish below this (1.3265) level. On the lower side, the target remains 1.3180. All the best!

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