Many times people have come to joke about this, but all the evidence is now staring us right in the face. Hotels have admitted with current occupancy they will not last a further 6 months and this is not specific to any country, globally this is the narrative. Hospitality workers, you know the ones? The guys that serve you your drinks and food and do all the jobs that most people don’t want? Well, they have either moved back with their parents or are living in cars.
So what does that have to do with the market? Well, a lot, if government spending goes up in the form of benefits and trying to sustain a collapsing economy, then taxes go up, the rich find new ways to avoid the elevated taxes and the fed is forced to print more money. The knock on effects are not good and we are not even at the worse part yet!
In the markets:
We saw GBPUSD and EURUSD as well as GOLD mark significant lows or what we expect to be significant lows in their price as we await the dollar to start breaking down and resume its downside trend. So today we will be watching closely but the market this week is very volatile with heavy news drivers so caution is required with risk and stop losses.