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Daily U.S. Session Watchlist: GBP/CAD

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This pair is still stuck in consolidation, but the upbeat U.K. CPI and the upcoming Canadian inflation data might spur a breakout.

Which way do you think GBP/CAD will go?

Before moving on, ICYMI, today’s Asia-London session watchlist looked at GBP/JPY for a range support test ahead of the U.K. CPI release. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Canadian inflation reports at 12:30 pm GMT
  • Empire State manufacturing index at 12:30 pm GMT
  • U.S. industrial production at 1:15 pm GMT
  • U.S. crude oil inventories at 2:30 pm GMT
  • New Zealand quarterly GDP at 10:45 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: GBP/CAD

GBP/CAD 1-hour Forex Chart
GBP/CAD 1-hour Forex Chart

Earlier today the U.K. printed hella impressive CPI readings, boosting hopes that the BOE could tighten monetary policy pretty soon.

Could this mean that a bullish triangle break for GBP/CAD is due?

This could all depend on Canada’s own inflation reports, which might show weaker price pressures for the previous  month.

Headline CPI is slated to slide from 0.6% to 0.1%, possibly dragging the Loonie lower.

Just be careful since the oil-related Canadian dollar might also take cues from the EIA report, which might reveal a huge reduction in crude oil stockpiles. After all, the latest weather disturbances left majority of production offline in the past weeks.

An even larger drop in crude oil inventory, combined with stronger than expected Canadian CPI, might be enough to spur a bearish triangle break for GBP/CAD.

Either way, the pair could be in for a move that’s at least the same height as the triangle if a breakout happens.

Technical indicators are leaning towards a bullish break since the 100 SMA is above the 200 SMA while Stochastic has plenty of room to climb.

Also, note that risk-off vibes are being felt across the markets after China printed downbeat data earlier on.

The Blogger Scientist is a "Medical Physiologist" and a "Financial Asset" Content Creator who aims at enlightening web reader on varying Financial Assets such as Stocks, FX, Crypto, MLM,. HYIP among others.

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