The ruble and threats of new sanctions
In the Russian currency market yesterday was dominated by the sale of the ruble. The Russian currency lost to the dollar 41 kopecks, sending the USD / RUB to 61.80. EURRUB has not changed, but only due to the global weakening of the Euro. Also the ruble yesterday failed to help the strengthening of oil, which by the end of the day turned to growth, updating the highs from late 2014. Currently, Brent is trading near $74.50.
Despite the fact that yesterday the US Treasury announced a possible easing of sanctions against RUSAL, “the Big Seven” has declared readiness to toughen sanctions imposed over the situation in the Donbass. The Declaration itself is not likely to have a serious effect on Russian markets. However, if Europe will Europe follow the U.S. example and impose sanctions against individuals or companies, this step will cause a new serious blow to the Russian markets.
The dollar is gaining momentum growth in Forex
Throughout the week the us dollar on Forex demonstrates a significant improvement. The main force behind this momentum is likely to be the growth rates of the debt market. The dollar index rose yesterday to a top of the range the last four months, reaching a level of 90.80 for the us dollar index, USDX.
This morning the EURUSD fell below 1.22 is the lower boundary of its trading range, which failed to pass earlier in January and March. The markets ‘ attention switches to the ECB meeting in the coming Thursday. Reaction to Draghi comments can complete a long-term consolidation of the Euro at the same time pulling a whole series of other European currencies, including the pound.