Spotlight on Retail Sales of Pound and Canadian Dollar
GBP/CAD is still moving lower and is trading moderately near 1.6990 early on Friday. The cross hit a one-month high the day before retreating from the 50-day EMA. At the same time, a bearish top candle can be observed during the daily timeframe, indicating further weakness in the asking price.
- GBP/CAD continues to retreat from the 50-day EMA to the previous resistance level. The bullish MACD signal is testing further bearishness, with the 200-day EMA and end-September levels challenging for buyers.
- UK retail sales are likely to reverse the month-on-month decline, raising concerns for the Bank of England over rate hikes.
- UK Retail Sales – Bulls wrestling with 1.3500 hurdl
EUR: There is a relatively calm day ahead in the economic calendar. The focus is data on wholesale inflation in Germany for October. A new surge will test transition theory while ECB Governor Lagarde seeks to bring the status quo to the market. On monetary policy, ECB President Lagarde will also speak later in the afternoon. As of this writing, the euro is up 0.01% to $1.1372.
Pound: The economic calendar is having a busy day. This morning’s focus is the October retail sales of units. The pound is expected to have a strong impact following Wednesday’s inflation data. As of this writing, the pound is up 0.04% to reach $1.3499. The future of economic power is a quiet day. Economic data is limited to housing data and has little impact on the dollar. However, it is expected that the chatter of the FOMC members will also have an effect. FOMC members Waller and Clarida will perform today. The US Dollar Spot Index closed down 0.30% on Thursday at 95.544
Residential and retail sales are in the spotlight, so you can have a busier day. Expect retail sales data to be key. However, apart from the economic calendar, we also expect crude oil prices to give direction. At the time of this writing, the Canadian Dollar is up 0.01% to trade at 1.2601 Canadian Dollars against the US Dollar.