The ruble is experiencing emotional stress predicciones
Subject of possible sanctions the US state Department against Russian ruble-denominated debt continues to dominate not only Russian, but also – partly – in the global InfoSpace. It makes no sense to return to the topic of realizability of such sanctions, which we have already described earlier. But as they say, the market is not so much a reflection of objective reality, but rather the result of the perception and expectations of its participants, who usually have no time to do deep meticulous research – simply due to the fact that they are engaged in stock trading.
As a result, the Russian ruble continues to slowly but surely weaken against most hard currencies, falling by noon today GMT to the level of 63,55 per dollar (73.50 rubles per Euro). The DXY dollar index continues to hold near their annual highs at the level of 95.12. Gold is, accordingly, at year lows, trading at $1224 per ounce and losing 0.3% from opening in Shanghai. The risks of the breakout of the precious metals “the first Bastion” – $1220 per Troy ounce, after which it becomes more likely counter-cyclical hike to $1195 per Troy ounce in this scenario increase significantly.
Interesting “innovations” came from the lips of the Chairman of the Federal reserve Bank of St. Louis James Bullard. Speaking about the negative impact of the current trade wars, he invites all countries simultaneously and voluntarily to abolish trade tariffs. “Positioning here is that other countries have free trade, but in the US it is not. If this is not just rhetoric – what we say – we just cut all tariffs and non-tariff barriers. It comes down to zero. It will be the best result for the whole world,” said Bullard in an interview on “Squawk Box Europe” by CNBC on Monday morning GMT.
In fact, if such a solution to the problem really to be based, the United States at least twice will increase the deficit in the trade balance, as highly overvalued dollar and large share of labour costs in the cost of American products subject to this “zero option” will come under “autocycle” (“irrelevant to the trade wars of the low demand on external markets products with cheaper alternatives”) due to the low price competitiveness. Again we return to the fact that any statements by officials on both sides of the ocean are valuable only if they are a thorough preliminary analytical study.
“International financial center”