Forex situation changes so quickly that former outsiders become leaders

Nothing excites a girl so much as her ex-boyfriend, kicking himself. Moscow decided not to hold an auction to sell bonds, and next, announced that it can do without any foreign borrowing at all, making the foreigners really upset. Their escape from the Russian bond market became one of the crucial drivers, pressing the Russian ruble down. Being anxious because the ship, pressed by the U.S. sanctions, was about to sink, they were putting on the masks of rats and shrugging their shoulders. Love and hate are one step apart...But were there any feelings, in fact? My parents say that if a guy really loves you, he will buy an apartment in the city centre. ​

The performance, staged by the Kremlin and the Bank of Russia, was really worth ovation. Standing ovation. The first one got the USD RUB bulls trapped by expressing its extreme discontent over a possible hike of the key rate. He was followed by economic advisors and joined by the Prime Minister. The market immediately remembered Turkey, where the president was poking his nose into the central bank’s affairs from time to time. Everybody knows how it worked out for the Turkish lira. Investors were so confident that the same monetary policy will go on September that they got really shocked by its tightening. Dollar fans understood that they had been screwed over. The ruble was leaving its partner felling happy and followed by “Damn!”.

Further-it is more. Announcement about suspension in bond selling at the auctions and about the willingness to get rid of creditors looks like a lack of regret about a runaway wife. The ruble and carry traders had been enjoying a happy marriage for a long time; but hardly had the Americans scared off foreign exchange traders when they got divorced. Should one get upset about this? Never! It is better to write a notice, “A wife and a dog are missing; the dog-rescuer will get a reward...”

I am not the same today as I was yesterday. And yesterday, I was no-one. The ruble’s turn from an ugly duckling into a beautiful swan couldn’t be ignored in the global markets. Bloomberg writes that it may some sense for the South Africa’s central bank to follow Russia's example; Financial Times suggests the same for Turkey. The former hopeless outsider has turned out into the leader. The Russian ruble has been up to the U.S. dollar in 9 consecutive trading sessions. The greenback's arrogance also contributed to the USD/RUB crash. The USD, like Donald Trump, is totally confident that the whole world is about the two of them. Don’t look down on humans?

There is no fence against ill fortune. Everybody has black stripes; you can’t live a life without getting scars. They started selling dollar of after its crash and no will to rise on the new round of the U.S. trade battle with China. A typical case, “I’m selling a Nissan-Patrol after a crash. Do not disturb me before the crash!” Love and hate are one step apart. Yesterday’s favorite has become an outcast today. After all, those who have been left behind, always have a chance to take a graceful exit receive messages from ex-lovers like “Don’t answer your phone today, I’m boozing”. The case with the Russian ruble provides some further evidence.


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Price chart of USDRUB in real time mode

Ruble: From Ugly Duckling into Swan

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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