The dollar will Collapse if the price of the following stock markets
Auctions the U.S. Treasury has caused a stir on the international stock markets. Russian indexes fell at the opening on Thursday. In the foreign exchange market until calm prevails.
We have previously written about the fact that this week the US Treasury plans to place government bonds worth more than 200 billion dollars. This is an extremely large placement, the consequences for the financial market it could not pass. The largest volumes of government bonds at auctions are already implemented and actions of the U.S. Treasury has already led to significant changes in the stock markets.
The American stock index S&P500 fell to a minimum for the last 3 months. Drop the European, Asian indices. The sale bypassed the Russian market. The MICEX index and the RTS dipped at the opening on Thursday. The foreign exchange market at this time is a sort of island of stability. We do not observe any significant changes in foreign exchange rates on the international currency market Forex.
In General, the policy of the financial authorities of the United States should lead to a decline in the American stock indices that we are now witnessing. At the same time needs to grow the us dollar. But we do not see. Frankly, it raises some questions. Dollar in the Forex market should be strengthened for several reasons.
First, the growth rate of the Federal reserve invests in U.S. assets very attractive. Second, the U.S. Treasury through auctions of dollar liquidity withdraws from the market, which leads to a shortage of the American currency. A scarce commodity, as we know, must cost more. Well, yesterday the selloff in the us stock market would lead again to the withdrawal of investors from risky assets, which are stocks, in risk-free assets, which are in fact the national debt and the U.S. currency.
On this background the dollar exchange rate on the Moscow stock exchange this morning is at around 66 rubles 65 kopecks, the Euro is trading at 77. The MICEX index kept around 2370 points, and oil quotations of mark Brent fell to $ 82 per barrel. Bitcoins according to CoinMarketCap rolled in the area of 6300 dollars.
Overall very strange looking, when all the reasons for the growth of the dollar, we do not observe. However, despite such rapid decline in U.S. stocks of something terrible and extraordinary happened. This is just a temporary correction, which showed the vulnerability of the us stock market. About the turn to speak is still a bit premature. That’s when there’s a reversal in the U.S. stock market, that’s when us and expect any cataclysms in the currency market.
As for the impact of all these developments on the Russian market, then, of course, now pressure will be Russian stocks, which probably makes sense to get rid of. The best solution now will still care in the U.S. currency. Recall that earlier we recommended buying the dollar in the range from 65 to 66 rubles per dollar and those investors who took advantage of our recommendation, now keep the profit.
The head of the analytical Department of the company,