Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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GBPCAD Looks for Short-Term Gains with Canadian Employment Data

The pound sterling is looking for further short-term gains against the Canadian dollar. The British currency has been beaten down as the country lurches towards a recession that could last until the end of 2023, according to the BoE.

Friday brings the latest Canadian employment figures and, after Wednesday’s 0.75% rate hike, a slower employment picture could see the BoC slam the brakes on tightening.gbpcad chart

GBPCAD 4 Hour Chart

The 4-hour chart of the GBPCAD shows a potential bottom in the air at 1.50. A negative employment number from Canada could spur further gains, but the overall trend is still down. The resistance would be at 1.525-1.530 and a break below 1.50 would open other losses.

Governor Andrew Bailey of the Bank of England said that a recession in the country was "the most likely outcome" and blamed the decline on the war in Ukraine.

Meanwhile, there was hope for some relief from the energy crisis in the UK, with the new Prime Minister ushering in plans for a cap on energy prices for the average household at £2,500. That could give some traders peace of mind to jump back into sterling if they feel that recent selling has been overdone.

The business community is also looking for action from Truss with the British Chamber of Commerce saying: 

"She must now take immediate steps to support the economy. Time is running out, and immediate action is required to address the cost crisis.

All the advice being levied at saving the UK seems to hinge on adding further to the country’s debt, which recently crossed the 100% GDP level.

The fifth consecutive from Canada on Wednesday came with growth of just 3.3% in Q2, which the BoC said was then projected. The bank’s governing council said the policy rate would need to rise further as inflation is expected to remain elevated. The bank might cool off with the outsized rate hikes if employment started to deteriorate.

Tomorrow’s Canadian employment data could add to gains in GBP since the growth difference between the two nations is stark and the UK is in a difficult position for pound gains over the longer term.

Last Updated: 09/09/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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