Most Prescient Ruble Bull Sells as Russia Ends World’s Top Rally
When Russia’s currency depreciation bottomed on 30 January, one investor announced it was loading up on rubles to the tune of $7.9 billion. Now, after the world’s biggest rally, that same investor is selling. The investor? Russia. Deputy Finance Minister Alexey Moiseev said on Tuesday the ruble is “very strong” and the ministry has started buying foreign currencies.
Market Roiled in Controversy, BOE, Fed Minutes Ahead
We’re coming off a controversial Tuesday session of trade, which saw the US dollar extend gains across the board in reaction to Monday news of the ECB front-loading QE in May and June. Meanwhile, more talk and no action on Greece. Looking ahead, the BOE and Fed minutes are the key standouts.
Take Profit on Long EURSEK, Enter Long GBPSEK
We are taking profit on our long EURSEK recommendation, booking a gain of 1.1% (FX Strategy Flash). We rotate into a long GBPSEK recommendation at 12.9750 with a 13.40 target and 12.76 stop loss. The key point is that we think markets continue to under-price scope for Bank of England (BoE) rate hikes, while in contrast we look for further easing from the Riksbank.