Forex Market: GBP/CAD daily forecast

During Friday’s trading session GBP/CAD traded within the range of 1.8216-1.8289 and closed at 1.8280.

At 7:03 GMT today GBP/CAD was losing 0.02% for the day to trade at 1.8278. The pair touched a daily low at 1.8267 at 6:45 GMT.

Fundamental view

Canada

The number of building permits in the country probably jumped 3.0% in May compared to a month ago, according to the median estimate by experts. In April permits issued by the government rose 1.1%. Building permits, as an indicator, provide information regarding demand in Canada’s housing market. A higher than anticipated number would be supportive for the Canadian dollar. Statistics Canada is to release its monthly report at 12:30 GMT.

Activity among purchasing managers in Canada probably increased in June, with the corresponding PMI coming in at a seasonally adjusted value of 52.5. In May the index unexpectedly declined to 48.2, signaling a contraction in the sector.

This indicator is based on a survey sponsored by Richard Ivey School of Business and Canadian Purchasing Management Association. It encompasses 175 respondents in both public and the private sector, selected in accordance with their geographic location and activity, so that the entire economy is covered. Activity among purchasing managers is closely watched by market players, as managers usually have an early access to data regarding performance of their companies, which could be used as a leading indicator of overall economic activity.

Readings above the key level of 50.0 are indicative of expansion in activity. Higher than expected readings of the PMI would bolster demand for the loonie. The official result is due out at 14:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8307, it will probably continue up to test 1.8335. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8380.

If GBP/CAD manages to breach the first key support at 1.8234, it will probably continue to slide and test 1.8189. With this second key support broken, the movement to the downside will probably continue to 1.8161.