USD/CAD continues to drift at the start of the trading week. In the North American session, the pair is trading at 1.3305, up 0.05% on the day. In economic news, Canadian corporate profits slowed to 0.4% in the third quarter, down from 5.2% in the second quarter.
Ahead – U.S., Canadian, GDP Reports
The Canadian dollar hasn’t shown much activity this week, but that could change if the U.S. or Canadian GDP reports are wide of expectations. The U.S. will release Preliminary GDP (second estimate) for the third quarter. Advanced GDP (initial estimate) posted a gain of 1.9%, and the second estimate is forecast to confirm this figure.
North of the border, Canada will release its monthly GDP report on Friday. The economy expanded 0.1% in August, and an identical figure is expected in September.
The round number of 1.3300 is fluid, as USD/CAD trades just above this line. This is followed by weak support at 1.3260. The 200-EMA and 50-EMA lines follow closely – the 200-EMA is at 1.3232 and the 50-EMA follows at 1.3204. This is significant, as these lines appear headed to a crossover, which could signal a trend reversal.
EUR/GBP has posted gains on Tuesday, erasing most of the losses seen on Monday. In the North American session, the pair is trading at 0.8572, up 0.41% on the day. The pair received a boost as German consumer confidence rose to 9.7, up from 9.6 a month earlier.
EUR/GBP is showing the strongest movement we’ve seen since mid-October. Could a breakout be imminent? The pair has hovered close to the line of 0.8560 for the past two weeks, but is showing stronger swings this week. Currently, this line is providing weak support. Below, there is support at the round number of 0.8500.
On the upside, there is weak resistance at 0.8596, which is protecting the round number of 86.00. Above, there is resistance at 0.8700, which has held since mid-October.
This article was originally posted on FX Empire
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