The flight from risk has subsided, but the dollar continues to climb

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Wednesday on the global financial markets flight from risk was replaced by a correction due to the lull in trade conflict between Washington and Beijing. Investors buy cheapened paper, after another escalation of tensions between the two trading partners. After platforms of Asia, plus opened European stocks, with Britain’s FTSE 100 gaining over 1% amid further decline in the pound to new lows because of the risks associated with PACSICOM.
The Russian stock market started with a fighting spirit. RTS already gaining over 1% against the recovery of the ruble, which began after yesterday’s testing dollar mark 64 RUB index Masuri feels less confident, but could gain momentum in the course of trading, if a positive risk assets will continue until the start of trading on wall street.
The us dollar is corrected after yesterday’s dash to the highs from early may outside of the RUB marks 64 in the morning quotes gravitate to the level of 63,50 RUB through a General improvement in attitudes to risk and the resumption of purchases of oil. Brent is testing a mark 75 on reports that the OPEC countries+ have not yet reached a preliminary agreement to increase production.
Today’s data US Department of energy on oil reserves will have an indirect impact on the dynamics of quotations of black gold, of course, if the results do not strongly deviate from the forecast values. The prospects for steady recovery over the mark 75 is still questionable.
The dollar continues to be in demand, this time strengthened including protective against the yen and the franc, which confirms the fading interest in safe assets. In the foreign exchange market today players ‘ attention will focus on the speeches of the representatives of the ECB and the fed in the framework of the conference of Central Banks. The confident rhetoric of Powell is able to energize the further strengthening of the dollar across the entire spectrum of the market.
Nathan Lambert
Head of research,
Global FX