Is the Ruble a Worthwhile Bargain?

Lior Alkalay - Contributor - Forex

The ink on the second Minsk agreement hasn’t even dried and already speculators are rubbing their hands together in greedy anticipation, ready to take a plunge into the Ruble’s “bargain” rate against the Dollar in the hope of a quick recovery. The basis for that sentiment is rather simple; market movers have long realized that the Russian Ruble is no longer a financial game but rather a geopolitical one. If tensions around Ukraine ease, the Ruble is expected to get some respite; if, however, tensions increase then still more sanctions are likely to loom over the Russian economy and the Ruble trade turns to short. The constant escalation and de-escalation and vice versa of the Ukrainian crisis has forced Ruble players to exercise greater caution. Yet, for some, the latest Minsk agreement represents a broader and perhaps longer lasting de-escalation and thus might further suggest that the Ruble could regain some lost ground. To assess whether that assumption is viable we must first delve into the political intricacies of Russia’s showdown with the West. Continue reading "Is the Ruble a Worthwhile Bargain?"

Gold Versus Top Currencies! And The Winner Is….

Aibek Burabayev - Contributor - Metals

Long ago, Gold was an exchange medium and one of the very first hard currencies. In this post, I will show you YTD results of the competition between this former currency and the top 7 modern currencies. I selected the US dollar first, and the others are 6 components of US dollar index placed by weight: EUR, JPY, GBP, CAD, SEK and CHF. I bet some of you never even thought about such currency crosses for Gold.

On the above diagram, you’ll see DXY components in different extents. They lost their value against Gold and only the 'king currency' managed to survive and even gain a small profit. So the winner is US dollar and the top loser is Swedish krona, the net difference between them is 20%, impressive! Continue reading "Gold Versus Top Currencies! And The Winner Is…."