crop ethnic trader with smartphone and laptop on bench indoors

When in doubt about the turmoil of financial uncertainty, we like to protect ourselves by buying US dollars. We like playing the risk off mood this way as it strips out company specific factors that would be associated with buying defensive stocks. We also aren’t that bullish on bonds either right now.

We express our view via shorting GBPUSD at 1.2059 and going long USDZAR at 16.4330. We like high beta plays this week as we feel the volatility should be our friend. We are targeting 1.1900 on GBPUSD and 16.60 on USDZAR.

Both trades are live in our Etoro portfolio that can be viewed here.

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