8 Oct 2019 14:19

VIEWPOINT: Ruble remains vulnerable amid continued uncertainty over U.S.-China trade talks - Nordea Bank

MOSCOW. Oct 8 (Interfax) - Heightened appetite for risk observed on Tuesday has driven the ruble to try to restore more comfortable levels in the principal currency pairs, Nordea Bank analysts said. Financial markets have yet to react to reports that the U.S. has blacklisted eight Chinese technology companies, but this creates a negative backdrop for upcoming trade negotiations between the world's two leading economies, the analysts said.

"In these conditions, we maintain that risks of an escalation in the trade war on Thursday are heightened, meaning that the ruble is unlikely to hold on at its current more comfortable levels. We will also note that oil prices remaining below the psychologically-important threshold for the ruble of $60/barrel will also prevent the Russian currency from actively restoring its earlier positions," Nordea Bank analysts said.

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