During yesterday’s trading session GBP/CAD traded within the range of 1.8500-1.8572 and closed at 1.8553.
At 08:02 GMT today GBP/CAD was gaining 0.12% for the day to trade at 1.8574. The pair touched a daily high at 1.8575 at 8:01 GMT.
Fundamental view
United Kingdom
The minutes of Bank of England will probably show that central bank’s policy makers were unanimous in keeping the interest rate unchanged at record low 0.5% at their last policy meeting on April 10. The Bank of England was given the responsibility of determining the basic interest rates in 1998, in order to meet the challenges posted by the government inflation target. Decisions are taken by the Monetary Policy Committee of the central bank. The Committee consists of nine members and meets monthly. Minutes are usually published on Wednesday, two weeks after the policy meeting. The format of voting is number of members that voted for an increase of borrowing costs, number of members that wanted a reduction and the total number of members, that have voting rights. If the minutes reveal the members weren’t unanimous in taking the decision, this would heighten the appeal of the pound as it can be an early indication that borrowing costs may be raised sooner-than-projected.
Bank of England is scheduled to release the minutes from its last meeting at 08:30 GMT.
Canada
Retail sales in Canada probably rose by 0.5% in February, after a 1.3% increase in the previous month, according to the median analyst estimate.
Retail sales are a key monthly indicator of consumer purchases in Canada. In addition, retail sales are an important component of GDP, which measures the overall production of the Canadian economy. The index does not include any form of direct sales, such as sales door-to-door, vending coffee, sale of newspapers or magazines directly from the printing office or publisher sales made through subscription or club cards. Retail sales made over the Internet are included in the study only when held to the same legal scheme. This is the percentage change from the previous month.
Retail sales excluding autos in Canada probably jumped by 0.5% in February, following a 1% gain in the previous month, according to the median forecast by experts.
The index presents the changes in the total value of retail sales without the cars, whose sales account for about 20% of the total. They are excluded due to their high volatility, which can significantly affect the overall trend. Data without car sales is considered to be more representative and determines the direction of development of the indicator more precisely. This is the percentage change from the previous month.
Statistics Canada will release official data at 12:30 GMT. Higher-than-expected gains will certainly provide support to loonies demand.
Technical view
According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8583, it will probably continue up to test 1.8614 In case the second key resistance is broken, the pair will probably attempt to advance to 1.8655.
If GBP/CAD manages to breach the first key support at 1.8511, it will probably continue to slide and test 1.8470. With this second key support broken, the movement to the downside will probably continue to 1.8439.
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