In June, the trend turned in favor of safe assets. Investors' fears about the a new wave of the pandemic confirmed in the form of an increase in the number of cases. Most likely, we are waiting for a new series of lockdowns that will negatively affect the global economy. UK will also impose restrictions and everyone is ready for this.
This week, the pound was again under pressure after Prime Minister Boris Johnson announced plans to raise taxes. According to investors, this will put pressure on the economy because it will lead to a reduction in people's income. Meanwhile, it became known that the business activity in the UK in August was at the lowest level in 6 months. Japan, on the contrary, surprised investors with a good quarterly GDP report, and this allowed the JPY to continue moving down.
Next week we are waiting for the publication of the most important reports on unemployment in the UK, data on inflation, as well as retail sales. Volatility will increase, and the pound may regain its position. Nevertheless, in the medium term, Safe assets have a chance of strengthening at the end of the year. Most technical analysis tools indicate the effectiveness of the deals to SELL and we also believe that the downtrend is only at the beginning of the path. So we can still make money on this decrease. Therefore, our choice for today are deals to SELL.
