Macro Trades: GBP/USD, USD/CAD [Video]

Dukascopy Bank Team Dukascopy Bank SA

GBPUSD

The British Pound appreciated against the US Dollar, following the UK Services PMI data release on Wednesday at 09:30 GMT. The GBP/USD exchange currency rate gained 22 pips or 0.17% during a minute, right after the release. The British Pound continued trading at the 1.2735 area against the US Dollar.

The Markit released UK Services PMI data that came out lower than expected of 50.4, compare to forecasted 52.5.

Chris Williamson, Chief Business Economist at IHS Markit said, "A sharp deterioration in service sector growth leaves the economy flatlining in November as Brexit concerns intensified. Measured across services, manufacturing and construction, the survey results suggest that the pace of economic growth has stalled. With the exception of July 2016, when business slumped in the immediate aftermath of the EU referendum, November saw the worst performance since February 2013".

USDCAD

The US Dollar appreciated against the Canadian Dollar, following the Canadian Overnight Rate announcement on Wednesday at 15:00 GMT. The USD/CAD exchange currency rate gained 66 pips or 0.50% during a minute, right after the release. The US Dollar continued trading at the 1.3380 area against the Canadian Dollar.

The Bank of Canada released the Canadian Overnight Rate that came out in line with expectations of 1.75%. Meaning that the bank did not change their interest rate. The move was mostly caused by the simultaneously published Bank of Canada Rate Statement, which included comments on the monetary policy in Canada.

The Bank of Canada noted, "Inflation has been evolving as expected and the Bank's core measures are all tracking 2%, consistent with an economy that has been operating close to its capacity. CPI inflation, at 2.4 % in October, is just above target but is expected to ease in coming months by more than the Bank had previously forecast, due to lower gasoline prices. Downward historical revisions by Statistics Canada to GDP, together with recent macroeconomic developments, indicate there may be additional room for non-inflationary growth".

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