- Canada’s core retail sales dropped -0.3% month-on-month in April falling short of market forecast.
- The Bank of Canada core inflation rose to 1.5% year-on-year, inching up slightly.
- The GBP/CAD surged more than 100 pips on the Canadian news.
The GBP/CAD currency cross is trading at around 1.7362 up 0.31% on Friday as the Canadian retail sales and inflation data came out below market expectation.
The GBP/CAD cross find an Asian ceiling at 0.7360 and then slid down throughout the European session ahead of the Canadian data. After which the GBP/CAD jumped about 120 pips as the Candian core retail sales disappointed the market.
In fact, Canada’s retail sales month-on-month beat market’s expectations at 0.6% against 0.4% forecast in April but the core retail sales came below consensus at -0.3% against 0.5% month-on-month. However, the Bank of Canada Core Consumer Price Index (CPI) year-on-year in April came above consensus at 1.5% versus 1.4% expected by analysts. The GBP/CAD in an immediate reaction bounced more than 100 pips and is now trading in the 1.7370 area
On the geopolitical front, the NAFTA (the North American Free Trade Agreement) deadlines have been pushed back and new dates have been confirmed yet. "The NAFTA countries are nowhere near close to a deal... There are gaping differences. We, of course, will continue to engage in negotiations, and I look forward to working with my counterparts to secure the best possible deal for American farmers, ranchers, workers, and businesses," said Robert Lighthizer, United States Trade Representative.
GBP/CAD 4-hour chart
The medium-term trend is bearish and supports are seen at 1.7219 swing low and at 1.7100 figure while bull will likely meet resistance at 1.7400 and 1.7500 figure. The GBP/CAD is trading below its 100 and 200-period simple moving average but just above its 50-period simple moving average on the 4-hour time-frame suggesting a downward bias.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD tumbles toward 0.6350 as Middle East war fears mount
AUD/USD has come under intense selling pressure and slides toward 0.6350, as risk-aversion intensifies following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY breaches 154.00 as sell-off intensifies on Israel-Iran escalation
USD/JPY is trading below 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price jumps above $2,400 as MidEast escalation sparks flight to safety
Gold price has caught a fresh bid wave, jumping beyond $2,400 after Israel's retaliatory strikes on Iran sparked a global flight to safety mode and rushed flows into the ultimate safe-haven Gold. Risk assets are taking a big hit, as risk-aversion creeps into Asian trading on Friday.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.