The break goes on, commodity currencies and the pound purchases

The break is going on. Bursts of volatility are observed in pound pairs (just after the last two volatile weeks, this activity seems to be increased only against the background of other currencies standing still). This contributes to both the accumulated fatigue after full of events weeks and the lack of important news.

Justin Trudeau has won a second term as Canada’s prime minister after the country’s federal election. The news as a whole is positive for Canada in general and the Canadian dollar in particular. However, no one rushed to buy it. Nevertheless, we consider Canadian dollar purchases to be a rather prospective trading idea, despite the strong oversold of USDCAD and rather weak data on retail sales in Canada published yesterday (-0.1% with the forecast a + 0.4% rise). So today we will look for points for sales of USDCAD.

Since we are talking about commodity currencies, we want to draw the attention of our readers to AUDUSD. If today it can gain a foothold above 0.6880-0.6890, this will be an excellent occasion to open long positions with a minimum target in the region of 0.7020.

Note that in the light of progress in the negotiations between the US and China, trading currencies, which include the Australian and Canadian dollars, actively work out latest losses and, on the whole, seem quite prospective.

Another good trading idea. Descents of 150-200 +/- points should be used to buy the GBPUSD. Remember, set stops because, at any moment, Brexit news may provoke bursts of volatility.

Speaking of Brexit and the reason for pound’s fall. The main question that plagued the markets can Boris Johnson 'get Brexit done' by October 31? Recall that we predicted that he could not, but in the end, everything would be okay. On the one hand, the Parliament made it clear that it was ready to support the agreement. On the other hand, there is no way to be in time before October 31.

In addition to the statistics on retail sales in Canada, yesterday was remembered for its still weak data on the US real estate market (Sales of existing homes in September fell by 2.2%, while analysts forecast a 0.7% decrease). In this light, we once again recall our recommendation to focus on looking for points for the US dollar purchase. In addition to commodity currencies and the pound, safe-haven assets (gold and the Japanese yen) are well suited for this.