Positive dynamics of oil helps the ruble
Yesterday the US stock markets experienced a real roller coaster. The markets initially soared after hearing the new review trump mitigate against Chinese investment. However, later economic adviser to the White house, Kudlow noted that it is not. As a result, U.S. indices went back to intraday lows in the area of the lowest values in over a month.
In the currency market, the dollar gained on Wednesday at 0.7%, but in contrast to stock markets, then the demand was evenly distributed during the day after the start of the European session. The EURUSD failed to 1.1560 – the area of lows of the last two months. The pound received an even more severe blow and is now at 1.31 – lows from November 2017.
We should also highlight the situation of the Chinese yuan and gold. Both tools methodically sold since June 14, when he began a new round of fears around the shopping wars. The yuan lost 3.7%, which is the sharp weakening in 2015. Fears of the consequences of a tariff war between the U.S. and China have increased the volatility of the USDCNY exchange rate last six months. Restrictions on trade with the United States, concern investors, who rush to reduce the expectations of China’s growth rate.
Problems with the growth of China – the largest consumer of gold – force to review the prospects of the precious metal. As a result, gold dropped from $1,300 to $1,250 per ounce – the lowest level since December of 2017.
Oil failed on Wednesday to add another 1.1% to $77.25 per barrel and Brent to return to the highs of the current month.
The dollar also strengthened against the ruble on Wednesday. The USD / RUB pair rose during the past day for 20 cents to 63.23, but EURRUB has lost 32 kopecks, at the end of the day on a mark of 73.11. Positive short-term dynamics of oil shifted the balance in favor of the ruble. However, we must remain cautious, traditionally the ruble may ignore negative trends for some time, but then proceeds quickly to play them.