The GBPUSD rate fell yesterday despite strong bull attempts to counter this. The pair fell below 1.2800 against the background of the latest results of the YOUGOV poll, which indicates a decline in the popularity of the conservative party. Now they occupy only 16 seats, and it’s not enough for the majority. The results of the surveys may be erroneous, so traders will continue to closely monitor the situation, and the pound rate falls against the background of growing uncertainty in the markets.
Next, we will see key data publications out of Canada and the US.
In Canada, GDP will come out m/m, and this publication can radically change the trend of trading in Canadian markets, given the weakness of the national currency due to the cheapening of oil in recent times.
The report will show how much the Canadian economy has grown in the last month, as it reflects the cost (taking into account inflation) of goods and services produced in the country. If it goes higher than expected, the Canadian dollar rate will rise, as buyers return to the market. Nevertheless, a disappointing indicator will lead to the sale of the national currency: in the market value will be the deterioration of the economic climate.
In the US there will be a Chicago Business Activity Index (PMI), which along with other current publications will show the likely direction of the US dollar: will the American currency fall or grow? If the index exceeds expectations, the dollar’s rate will rise. Against the backdrop of a lower indicator, the currency can be sold, as traders will lay a less optimistic forecast in the price.
Finally, the United States will issue an index of unfinished sales in the real estate market (m / m), which will show the change in the number of signed real estate contracts (for existing houses), the transaction for which has not yet been completed. The report is considered the leading indicator of economic health, as buying a new home entails repair and purchase of furniture, which also has a financial side. If the report comes out better than expected, the US dollar will rise, if worse than expected – you can count on the sale of the American currency