US and China getting ready for negotiations, Brexit stuck

U.S.-China trade talks kick off again this week. Negotiations between the United States and China are set to begin on Thursday. China is not going to reform industrial policies or government subsidies, that is, wanted to continue to ensure the competitiveness of its products by any means, including not very honest ones.

Trump said that any agreed deal would be a 100% victory for the United States. Despite the fact that the US negotiating position is deteriorating every day (the US economy is signalling a slowdown, which is the result of the trade war, which means that the United States are interested in the deal), and the impeachment procedure does not contribute Trump to growth of his bravado and aggression in the negotiations.

So the outcome of the negotiations does not seem predictable.

As for the state of the world economy and the US economy, in particular, it is worth noting information about the upcoming personnel retrenchment in HSBC (up to 10,000 jobs), as well as the news that General Electric will freeze pensions for 20,000 workers. All these are extremely unpleasant signals. Recall, dollar sales remain our basic trading idea. At least this week.

Our recommendation is to buy gold and the Japanese yen, despite their yesterday's decline, remain relevant. Today's entry points are close to ideal ones. Entering positions is necessary consciously, taking into account the fundamental background at that time, and also do not forget about the stops. These positions are good and prospective, but the fundamental background to relax. Any news on negotiations between the US and China will provoke a sale of gold - keep in mind.

Another promising position, in our opinion, is the purchase of the British pound. A version of the agreement from Johnson was rejected by the EU and essentially sent for rework. On the one hand, the very fact of substantive negotiations suggests that the parties intend to conclude a deal. And on the other, Johnson is unpredictable. However, we believe in common sense, as well as the British Parliament, and advise to take advantage of the current uncertainty for purchases of the still cheap pound. Until October 31 (the deadline for Britain to exit the EU) there is not much time left.