Euro and pound week, pressure on the dollar and weak NFPs

Boris Johnson managed to turn into the worst premiere minister ever. His attempts to neutralize Parliament so he could complete Brexit by October 31 failed. As a result, Johnson lost a majority in Parliament. Why even Johnson’s brother disowned him left the Cabinet and the party.

As we warned in our reviews, Johnson's defeats are pound’s strength. As a result, the pound after gaining lows since 2016, added about 400 points by the end of the week. So those of our readers who listen to our recommendations should have earned good money.

As for the pound and Brexit. The legislation, which requires Johnson to ask for a three-month extension to Britain’s EU membership if parliament has not approved either a deal or consented to leave without agreement by Oct. 19, is expected to be signed into law by Queen Elizabeth on Monday.

Readers could earn a couple of hundred points on our recommendation to buy AUDJPY.
NFP data was the main statistical event of the past week. As we predicted, they turned out to be rather weak and below forecasts (+ 130K at the forecast + 160K). So, the dollar was under pressure. On September 18, the Fed is likely to lower the rate, and the dollar could be sold out.

As for the Canadian dollar. On Wednesday, the Bank of Canada did not reduce the rate, and then on Friday the Canadian labour market showed excellent results, as the Ivey PMI Business Activity Index did. So sales of the USDCAD, despite its decline by more than 200 points, look like a good trading opportunity.

The euro and the pound can gain a lot this week. As for the pound, the confrontation between Parliament and Johnson will continue. Therefore pound volatility explosions are quite likely.

As for the euro, the announcement of the results of the ECB meeting will be the main event. There are a lot of are waiting for a new round of monetary easing from the Central Bank. If a new program of quantitative easing and rate cuts would enter into force then the euro will be under pressure.

This week we will continue to look for points for gold purchases as last week, this tactic showed great results.

Do not forget to sell the Russian ruble (the Central Bank of the Russian Federation again reduced the rate), as well as oil (supply on the market is growing amid the threat of lower demand).

This week we will continue to look for points for gold purchases as last week, this tactic showed great results.

Do not forget to sell the Russian ruble (the Central Bank of the Russian Federation again reduced the rate), as well as oil (supply on the market is growing amid the threat of lower demand).