Daily Alert – Wednesday 9th September 2020: Boris drives down the GBP

Mark NugentDaily Alert, Sept 2020

Daily Alert – Wednesday 9th September 2020
Boris drives down the GBP

On Monday UK PM Johnson set an aggressive EU trade talks deadline that casued the GBP to drop. Then the government announced planned legislation that will undermine the Withdrawal Agreement. Yesterday we had a government minister admitting that the legislation will break international law. Yesterday Johnson declared that the EU Withdrawal Agreement needs to be rewritten to preserve the Union. The GBP has reacted predictably by dropping. In fact, it is the worst performing currency in the G10.

I shorted the GBP at the close on Monday by selling GBPUSD. So far, it’s doing nicely.

The Americans got back to their desks on Tuesday after Labor Day. They delivered a continuation of the tech stock rout we saw at the end of last week with the Nasdaq being in correction territory (a drop of 10%) albeit briefly. Today opened with a gap down but things are recovering slowly. I will be looking closely at going long on equities later today.

I’ll be taking a few days off and will be back next Wednesday.

VIP Club members can watch the video HERE