USD/CAD, EUR/GBP – Canadian Dollar Dips, EUR/GBP Continues to Drift

USD/CAD

USD/CAD has posted slight losses on Thursday, erasing the gains seen on Wednesday. In the North American session, the pair is trading at 1.3278, down 0.19% on the day.

Canadian Jobs Slide, Retail Sales Next

The ADP nonfarm employment change has been showing strong readings in recent months, but the indicator collapsed in October, with a reading of -22.6 thousand. The Canadian dollar escaped with minor losses, but investors are unlikely to be in such a forgiving mood on Friday, when retail sales are published. The markets are braced for bad news, with September retail sales expected to decline by 0.3%, after a decline of 0.1% in the previous release. The core reading is expected to decline by 0.1%, which would mark a third successive drop.

Technical Analysis

The round number of 1.3300 remains active. Currently, it is an immediate resistance line. Close by, 1.3315 is showing resistance.

On the downside, there is support for USD to CAD at 1.3250. Close by, the 200-EMA is providing support at 1.3234. Below, there is support at 1.3150.

EUR/GBP

EUR/GBP has been flat for most of the week, and I don’t expect any change before the end of the week. In Thursday’s North American session, the pair is trading at 0.8570, unchanged on the day.

Technical Analysis

With no movement from EUR/GBP, our technical analysis remains the same. There is immediate support from 0.8560, which has been relevant for over a week. Below, there is support at the round number of 0.8500. On the upside, there is immediate resistance at 0.8596, which has been relevant since mid-October. Above, there is resistance at 0.8700.

Although EUR to GBP is within striking distance of the immediate resistance and support lines, there are no signs that a breakout is near.