Gold's failure, Russian vaccine, more Trump orders

The main event of yesterday was the maximum one-day drop in gold prices over the past 7 years. Considering how high the asset had climbed, it cannot be said that it was something incredible. But still a very impressive fall.

As for the reasons, there was information that an effective vaccine against coronavirus was registered in Russia. President Vladimir Putin said one of his daughters had already received it. It is impossible not to note the doubts of experts about the adequacy of tests, especially after the words of the Russian Minister of Health Mikhail Murashko that the production of the vaccine will take place in parallel with its testing.

Against this background, the information that the total number of cases in the world has exceeded the 20 million mark looked not so hopeless, especially given the fact that the situation in the United States continues to improve.

Trump, meanwhile, seems to have gotten a taste for presidential executive orders bypassing standard congressional procedures. This time, he decided the time had come for a capital gains tax cut. Well, a record budget deficit resulting from a decline in revenues and a simultaneous increase in expenses by 50% - this is the right time to reduce the taxes.

Meanwhile, the sentiments in the Eurozone and Germany continues to improve. The ZEW expectations index for the Eurozone came out at around +64.0 against the previous value of +59.6 points. As for the statistics on the UK labor market, it inspired pessimism: the employment rate fell at the highest rate since 2009 (three months before May, 220,000 jobs were lost). But today the data on the UK GDP will be published, which not only state the fact of the recession, but also promise to be the worst in Europe. In this regard, we remind our recommendation to sell the pound in the foreign exchange market.