The dollar is becoming a headache not just currency markets
Yesterday, Moody’s issued a review titled “Slower Growth amid High Leverage Lessens Upside for Interest Rates” (“Recessionary processes in the background of high leverage reduces the probability of further interest rate increases”), and it saved us stock indices and, as a result, almost the entire universe of risky assets, which most of us stock trades has collapsed under its own weight.
The study, the markets saw in the background sybasesa from the horn of plenty of negative macrostatistics across the USA. On the back of weaker figures for the labour market (expected today, the main publication on this topic – Nonfarm Payrolls, the number of jobs outside agriculture sector in the USA), production orders, and spiciously to 7+ million barrels of oil reserves in storage, particularly the outstanding properties possessed publication on the rapidly deteriorating trade balance of the United States.
During the presidency of Donald trump, despite all his efforts, the monthly foreign trade deficit of the U.S. grew from $ 45 billion to 55 billion dollars. The reasons are obvious – an uncontrolled growth of the dollar against world currencies, making American products uncompetitive in the context of international trade, and, in fact, own a trade war. One of the reasons of such a weak output figures collapsed the export of soybeans from the United States ahead of China’s retaliatory duties.
However, the main theme of the day remains the outcome of the OPEC meeting+ in Vienna. A media comment on the silence as a sign of a failed new agreements between member countries, but we would like to warn against hasty conclusions. Russian energy Minister Alexander Novak urgently flew from Vienna for consultations with President Putin regarding the interim results of the meeting, this means that the negotiations are not completed, although the timing of the event is exhausted. It seems if make the reduction of less than 1 million barrels per day, it will not save the price of “black gold”, as markets want to see a figure of no less than 1.2 million barrels.
On this basis, the ruble started again today on a negative wave, down from the opening to 67 per dollar, but this time mark proved an insurmountable Bastion, and after half an hour, the domestic currency moved in the opposite direction of the realization that the markets of the above-mentioned caveat that the negotiations oilmen’s in fact not completed, so as of 12:00 GMT it is already 68,78 per dollar. In tandem with the Euro the domestic currency has taken the “beautiful” mark of 76 and, apparently, not going to fast to take it.
“International Financial Center”