GBP/CAD moves on Belarusian sanctions

Eliman Dambell Sayvio AI

GBP/CAD

Although financial markets were still reacting to last night's US Presidential debate, it was GDP data released from the UK and Canada which created today’s biggest FX mover in the GBP/CAD.

Coming into Wednesday, both currencies had already been rife with volatility, after it was reported that the UK had joined Canada, in sanctioning Belarusian President Alexander Lukashenko. Regarding the sanctions, UK Foreign Secretary Dominic Raab stated that the sanctions were imposed with Canada “in a bid to uphold democratic values and put pressure on those responsible for repression”.

As of writing GBP/CAD was up close to 57 pips, after gaining as much as 133 pips earlier in today’s London session. Rates reached an intraday high of 1.7294, which is its highest level since 4th September. The move came as the recent resistance of 1.7256 was briefly broken, before once again falling below resistance. Although this recent move appears to be a false break, the 10 and 25 EMAs are still positioned for further upside gains; if this does happen, are you planning on going long?

4H Chart via Tradeview Markets

EUR/GBP

Many traders who have followed Brexit for the last 4 years have undoubtedly never been as interested in trading EUR/GBP as they will be this week, and the next few weeks, leading to the 15th October deadline to “get a deal done”.

The final round of talks between Europe and Britain have already begun, so has the volatility surrounding both currencies. Today data released by the UK’s Office for National Statistics showed that the country's GDP shrank by 19.8% in the three months to June, which is the biggest quarterly decline on record. This came as news from Germany showed that retail sales in August rose much more than expected, whilst unemployment also dropped.

As of writing, EUR/GBP was down around 50 pips, falling to its long term support level of 0.9067 in the process. This pair fell, after attempting to climb towards resistance of 0.9192 yesterday. Irrespective of the fall, the 10 and 25 EMAs are currently positioned for an upwards cross; could we now see yet another change of direction in the next few days?

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Author

Eliman Dambell

Sayvio AI

With over a decade in financial markets, Eliman brings an experienced and diversified point of view to market analysis. He covers current and historical macro trends to give insights on Metals, FX, Stocks, and Crypto.

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