New coronavirus goes on the offensive

By 25/06/2021News

Gold  1779,075

EURUSD   1,1939

DJIA  34207,50

OIL.WTI  73,425

DAX   15576,50

In recent months, the whole world has been in the vaccination phase. More than half the world’s population had already been vaccinated. All this meant that we were about to go back to our old lives, without lockdowns and distancing. But suddenly an Indian strain of coronavirus has emerged that could make a difference to our future.



Why do we have a graph of the pound/dollar pair? Because it all starts again with the UK. June 23th marks 5 years since the Brexit referendum data was published, which shocked the whole of Europe. At that time the GBP/USD pair flew downhill and still hasn’t recovered to the previous levels. It can now be affirmatively stated that due to the all-round weakness of the economy, the pound is an outsider currency.
As research shows, the entire UK corporate sector is going to face big problems in the future. Already we can see that the economy of this state is not growing at the rate that was predicted, all because of Brexit.
The pound has a difficult fate ahead of it. It’s likely to be in a range for a long time. The government is having a hard time rocking this system, even though they are forecasting GDP growth of as much as 7% due to the consumer boom.
This is where the Indian strain of coronavirus comes into the picture. There are a huge number of new infections in the UK, even though the country says more than 65% of the population has already been vaccinated. In a month and a half the number of infections has gone from two thousand a day to sixteen. The rate of spread is impressive. What does this mean? Is the vaccine not working? Many questions remain unanswered, but it is time for the government to take action and conduct research in parallel. If nothing is done, the fragile economy will very quickly lose what it has managed to preserve of late.
If we look deeper, let’s imagine that there is such an increase in disease in the US. Restrictions would have to be imposed again. The labour market could collapse again and the economic recovery would be over very quickly.
All forecasts would have to be thrown out and scenarios rewritten. This development could be very painful for the entire global community and set things back a couple of years.

8.00 Gfk consumer confidence index in Germany for June
14.30 US Personal Consumption Expenditure YTD
16.00 US Consumer Confidence Index for June from the University of Michigan

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.