GBP/CAD forecast for November 17, 2020
Looking at the chart, we see that the GBP/CAD pair has been on a growing trend since August 2019 with a smaller pullback. In the coming period, we can expect to see the GBP/CAD pair again at 1.75000; now, it is currently slightly above the level of 1.72700.
Tomorrow we have essential news for GBP Inflation Reports; Core CPI is also likely to remain unchanged at 1.3%, Producer entry prices will improve from 1.1% to 1.2%.Producer prices of products probably recorded a recovery of 0.1% after previous declines of 0.1%. We also have a speech by the Bank of England (BOE) Governor Andrew Bailey on the next financial steps.
The producer Price Index, which is considered the leading indicator of inflation, indicated a slight rise in prices. Negotiations between the E.U. and the U.K. could continue until this week, as talks are at a stalemate on crucial issues.
A breakthrough in the trade agreement could be bullish for the GBP, as it could remove some uncertainty from the economy. Canada is an oil exporter, so CAD tends to react to oil-related news.
Crude Oil has found U.S. support by excluding the blockade even though European countries restrict economic activity.The OPEC + Joint Ministerial Monitoring Committee will meet tomorrow and recommend reducing production for 2021.
Only at the OPEC + meeting on 30 November will we know whether the members will accept the board’s recommendations.
Growing cases of coronavirus in other major economies could raise concerns about the lock and strain global demand outlook. New vaccine updates will also affect higher Canadian dollar yields.
Despite Canada’s conclusion, the number of newly infected with coronavirus is at a record level, which also puts additional pressure on the economy. There is a lot of news this week to expect greater volatility in the Canadian dollar.
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