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GBP down marginally ahead of trade/IP data Friday – Scotiabank

The Pound Sterling (GBP) is down 0.2% against the US Dollar (USD) and a mid-performer among the G10 as we head into Thursday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP continues to trade just above the descending trend line

"Markets are waiting on Friday’s trade and industrial production figures, with a calendar that will remain heavy into next Thursday’s BoE as we look to employment on Tuesday and CPI on Wednesday. Markets are expecting a hold at next week’s meeting and the short-term rates market has been softening its pricing of cuts, offering the GBP some fundamental support via yield spreads."

"The latest downward drift in GBP has pull its RSI back toward neutral, and price action remains muted overall. The GBP continues to trade just above the previously broken descending trend line drawn from the early summer highs, and it currently roughly coincides with the 50 day MA (1.3465). We look to a near-term range bound between 1.3450 and 1.3550."

CAD is about as 'undervalued' as it was in the spring – Scotiabank

Canadian Dollar (CAD) softness is extending as markets look ahead to next week’s BoC policy decision and the prospect of a 1/4 point cut in the target rate, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
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Gold dips as traders await US CPI data amidst Fed rate cut speculation

Gold (XAU/USD) edges lower on Thursday as investors turn cautious and reposition ahead of the US Consumer Price Index (CPI) data release.
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