Steven Woodcock, Senior FX Analyst for Plutus FX, joined Tip TV to elaborate on the currency outlook during the thin holiday months.
Bearish on GBP/USD
The GBPUSD has remained a range trade this week, according to Woodcock, who believes that the range will continue into next week, with possible downside for the sterling in the future. He noted that EURGBP had been a prime driver, and that we might see a relief rally, with a possible move to the 71/71.50 area, which would pressure the GBPUSD.
GBP/CHF: Downside expected
Woodcock commented that the GBPCHF will come down in the future, as the EURCHF begins to just turn over, but there is not much in the charts at the moment concerning the CHF.
USD/CAD: Outlook depends on Canada GDP, but susceptible to the downside
The USDCAD is onward and upward according to Woodcock, with the CAD being aided by the bank of Canada. He believes it has hit a tough point at 130.50, but with good Canadian numbers today there is a chance the USDCAD could break through. Alternatively, poor numbers or oil could cause a pull back.
EUR/USD: Look at the crosses
Woodcock finishes by adding the EURUSD has traded heavy recently, but argues that it does need a clear out. He believes a danger move could be to the upside, and decides that a cause for a spike in the EURUSD could be the EURGBP. Woodcock advises to watch the weaker side of the crosses to ascertain outlook for the euro dollar.
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