Weekly Forex Outlook: October 22-26, 2018
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Will the GBP recover from the dead-end in the Brexit deal? The GBP/USD pair plunged because of the negative comments on the Brexit deal. The week won’t bring a lot of economic data for the pound, as a result, there are risks of the fall. The pair is anticipated to trade in the horizontal channel. Key levels for the GBP/USD pair are 1.3263 and 1.2916. The fall below 1.2916 will be highly negative for the pair.
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What to expect for the euro? Again the euro suffers. The Italian budget issue weights on the currency a lot. If the pair appears below 1.1430, the next support will be at 1.13 – August lows. If the US economic data are weak, the pair will have chances to recover. The first significant resistance will be at 1.1580.
Will the rate hike pull the Canadian dollar up? Ahead of the rate hike, the Canadian dollar is anticipated to rise. It will pull the USD/CAD pair down. The key support is at 1.2932. If the US economic data are strong, the pair won’t fall so low. There will be a chance of the rise to 1.3172.
Let’s have a look at the economic calendar. The week isn’t full of important economic events.
Only since Wednesday, we will get significant events to trade on. The Bank of Canada will release the interest rate. Be ready to trade before the release, as the rate hike will be already priced in. If only the central bank cancels a rate hike, the Canadian dollar will plunge.
On Thursday, the European Central Bank will hold a meeting. Any changes in the interest rate are not anticipated. However, comments of the bank will affect the direction of the euro. Also on Thursday American Durable and Core durable good orders figure will be out.
Friday will offer a chance to trade the USD on the Advance GDP data.