Currency market: Again in August and again the threat of crisis
Today I will be brief – we heard about sanctions and trade wars on the international world stage of global economy and currency markets.
Turkish Lira and Russian ruble, along with the single European currency and the British pound, they all share one simple trigger – rate of these currencies against the U.S. dollar and USA sanctions, right to UK not apply sanctions, but China, IRAN, Russia and Turkey, together with European steel producers not only have a common sanctions RAID. And not only RAID. The rhetoric of the American President Donald trump, I personally like the firing of a revolver in the Wild West prairies of Texas.
Don’t like steel and machinery from Europe – a shot in the direction of European producers of steel and automobiles. There is no need in such quantity of goods and China – shot in the form of trade duties on Chinese goods. Iran – a national threat – crush Iran with new sanctions and tear the Islamic Republic’s nuclear deal and the nuclear program. And do not care about America that is an international agreement and it applies to America as well.
The main problem is that in the end it will lead? Whether nervousness from the markets of the countries of emergen-markets to spill over into the us stock market and cause a new wave of correction and revaluation of values in the global stock and currency markets?
While the outcome is not happy for Russia and Turkey – the national currency of these countries clearly do not need the global and on the domestic market if not panic, as in Turkey, then at least anxiety, in the Russian Federation.
The single European currency is experiencing difficulties with the dialogue on the exit of a United Europe, England as well is not popular with investors, but it has been joined and the British pound, because of the General attitude of global investors to go into the quality in their conventional sense – everyone rushed to buy us dollars in the hope for a global breakthrough in the American economy and geopolitics. But not so simple.
Already heard from different sides while timid, but the statement that America held outwardly political line on the sanctions and pressure distribution of trade preferences in relation to their corporations casts doubt on global trade in the current context. The situation may go very far and lead to total collapse, which will undoubtedly lead to a new crisis, and it will be a common threat and not strengthen the global community.
Again in August, and again the world economy and trade is under threat and this threat becomes brighter and brighter.
Head of analytical Department,
“International financial center”