33 misfortunes of pound, U.S. stimulus and Trump

Dec 23, 2020

So far, the main loser of the week in fundamental terms can be considered the British pound, which literally fell upon all the misfortunes of the world. A new, more infectious strain of coronavirus has provoked almost the whole world to sharply limit contact with the island, which is fraught with both massive economic damage and disruptions in the supply of goods, including food.

British economy in 2020 was in trouble without all these issues^ the country is going through the worst period since the Great Frost of 1709 (!). Analysts expect the country's GDP to fall by 11% in 2020. And that's the half of the trouble, because now the UK has a chance of a double dip recession. Recall, technically, a recession is a decline in GDP for two quarters in a row. For the UK it happened in the 1st and 2nd quarters of 2020. And now analysts warn that the fourth quarter 2020 may end in the red, and given the current tough restrictions, which will last at least a month, or even two, there is every reason to expect a decline in GDP in the first quarter of 2021.

And, finally, everything is traditionally bad with Brexit. London made an offer to Brussels, which europeans should not refuse (meaning a 35% reduction in fish catch in British waters by Europeans instead of the starting requirement of 60%). But the EU rejected the offer, which plunged the already gloomy British into despondency. Boris Johnson, to finish pound, has ruled out extending the deadline for reaching a post-Brexit trade deal into 2021.

In general, everything is not very good with the pound and its current prices seem to be extremely high against this background. This means that there is an opportunity to generate extra profits. We are talking about selling the pound. Primarily against a very oversold dollar.

Trump also reminded about himself yesterday. It would seem that the stimulus package in the US has been agreed and voted on. All that remains is Trump's signature and $ 900 billion will practically knock on the doors of the US economy. But Trump unexpectedly said that this stimulus package is “a disgrace” and refused to sign it.

In general, there is nothing much to be happy about today, which means we continue to sell European and American stock markets, oil and other Teslas with cryptocurrencies.