Oil and the ruble tumbled after the collapse of the US deal with China
Donald trump, the surprise of markets, increased duties on some Chinese goods to 25%. It was a shock for traders of the global market, which are prepared for a successful resolution of the situation. Now the main trend of the beginning of the week is a transition for safe assets, but because the USD / RUB has managed to rise to 65.50 (area of highs of April) – and this is clearly not the limit. EURRUB also re-started the day on 23 cents to 73.17, approaching the peaks last month.
The same causes and under pressure of oil, the schedule goes under $69 (below the 200-day moving average), losing about 2% and dragging down the ruble. At the same time, Russia intends to increase gas sales to China and Saudi Arabia have already managed to reduce selling prices for its “black gold”. All of these factors cause pressure on the quotations of energy, bringing to the agenda the question of overproduction of oil.
Traders who want to trade the ruble this week, you should pay attention to the behavior of other currencies of developing countries. It is significant that a very stable Chinese yuan fell 1.3% – the most dramatically over 3 years. The Turkish Lira returned to decline, updating the lows from October, while the Australian dollar fell from morning to 0.6960. These currencies are a good indicator of investor sentiment about the prospects for the global and Chinese economy. For example, over the past 15 years EURUSD has fallen below 0.7000 only at the peak of the major market fears.
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