The devaluation of the ruble sets new records

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After sliding stock markets of Asia, where it continues to affect the recent escalation of the trade war, the European markets began trading on Friday on a minor note. Britain’s FTSE 100 is losing 0.54 percent, the French CAC 40 is declining over 1%, DAX 30 declined 1.5%. The markets of the Old world are under pressure due to concerns about the risks for banks in the region by Turkey. About these risks before warned the head of the ECB Draghi and thereby launched the free fall of the Euro.
EUR/USD easily broke through the 1.15 level, which is the end of may acted as support. Quotes updated minimums in the area of 1.1430, threatening the level of 1.14, which may be broken today if the American inflation will exceed forecasts. By the way, waiting for a key report, the dollar feels confidently strengthened against most currencies, except the yen, which benefits from the status of a protective asset.
The ruble continues to fall on tightening the sanctions rhetoric. The threat of new sanctions against Russia could not fail to undermine the attractiveness of domestic assets in General and of the ruble in particular. The dollar, however, have reached a new 2-year highs around 67 RUB at the opening of trading on Friday, and then slightly retreated, but not closed the gap formed at the start of the session. Before the onset of the weekend in such a tense situation and heightened uncertainty, the traders hardly will dare at purchase of the ruble – it is now simply no reason. However, the rate of decline of our currency can slow down.
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Nathan Lambert
Head of research,
Global FX