Downside to GU

18 בספט׳ 2020

From here, I see a serious downside for GU, Dollar will gain strength in my opinion over next month or so, Brexit issues as well as relaxed measures so far in the UK so far has resulted in lot's of death so there may be a national lockdown or at least local ones which will severely affect the economy. Additionally Furlough Scheme is due to end next month so this will also have a serious negative effect in the economy. This will mean BOE will have no choice but to introduce negative rates. Over all it is not looking good for the UK/GBP!