GBP/USD is trading sideways on Friday. In the North American session, the pair is trading at 1.2809, down 0.09% on the day. The pair has enjoyed a good week, with gains of 1.0%. There are no U.K. events on the schedule.
No Surprises from Bank of England
As expected, the BoE maintained the benchmark rate at 0.75%, where it has been pegged since August of 2018. The vote was significant, as two of the nine MPC members voted to immediately cut rates. Recent data out of the U.K. has been soft, but the BoE is not in a position to trim rates, with the Brexit turmoil and an election in December. However, this could prove to be a case of simply delaying the inevitable. A report from Rabobank, the second-largest bank in the Netherlands, said that the bank expects the BoE to lower rates twice in 2020, due to weak economic conditions.
GBP/USD continues to move lower this week. The pair continues to pressure support at 1.2810, but this line remains resilient. If this line breaks, the pair has significant room to move lower, as the next support level is at 1.2720.
USD/CAD has posted gains on Friday. In the North American session, the pair is trading at 1.3222, up 0.36%. Currently, the pair is at its highest level since October 15.
Canadian Employment Change Sinks
Canada’s employment change was dismal in October, as the economy lost 1.8 thousand jobs. The forecast stood at 14.7 thousand jobs. The unemployment rate remained steady at 5.5%. There was more negative news on the construction front, as Building Permits declined by 6.5%, a 4-month low. This reading was well short of the estimate of -1.9%. The soft data has weighed on the Canadian dollar on Friday.
USD/CAD has tested the round number of 1.3200 on Friday. Close by, there is resistance at 1.3225, which is under pressure and could be tested in the North American session. The pair is flirting with the 50-EMA line, which is at 1.3187. On the downside, there is support at 1.3155. Lower, we find support at 1.3095.
EUR/GBP is showing limited movement in Friday trade. In the North American session, the pair is trading at 0.8612, down 0.10% on the day.
Traders are no doubt showing signs of impatience, as EUR/GBP has remained range-bound since mid-October. This would indicate that the pair is ripe for a breakout, but the timing of such a move remains unclear. In the meantime, I would counsel patience until a trend emerges. On the downside, the round number of 0.8600 is an immediate support level and remains vulnerable. This is followed by support at 0.8500. On the upside, there is resistance at 0.8700.
This article was originally posted on FX Empire
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