Can You Profit from a Falling Ruble?

CAN YOU PROFIT FROM A FALLING
RUBLE?
By www.ForexConspiracyReport.com

http://www.forexconspiracyreport.com/can-you-profit-from-a-falling-ruble/
Oil keeps going down in price and so
does the ruble.

The low price of oil is not Russia’s
fault but other problems are of their
own making.

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Before We Continue…

Meanwhile can you profit from a
falling ruble?

To do this you need to understand
why the ruble is continually in trouble.

The New York Times writes how stock
shares and ruble fall as oil prices
tumble.

The ruble dropped sharply at the
opening of trading to more than 76 to
the dollar, from 74.75, before
recovering to close at 75.8.

Oil and other commodities like natural
gas and steel, which make up the bulk
of Russia’s exports, have fallen
sharply on fears of a slowdown in the
Chinese economy.

A barrel of the benchmark Brent crude
was trading at less than $32, down
more than 4 percent for the day.

In an interview published on Monday
in the German newspaper Bild,
President Vladimir V. Putin of Russia
conceded that the plunge in oil prices
was hurting his country’s economy

But that it would have a positive side
in that it would push Russia to
improve its financial policies.

The policies that Russia could change
are the annexation of Crimea, support
of rebels in Ukraine and adventurism
in Syria although these are not the
policies that Russia is referring to.

The USA and EU imposed sanctions
on Russia after their annexation of
Crimea and support of Ukrainian
separatists.

We expect to see a significant Forex
response as sanctions on Russia
worsen.

Sanctions were increased
on Russia’s energy sector as the
civil war in Ukraine continues and a
Malaysian commercial jet is shot
down by a missile as it passed over
eastern Ukraine. According to the
Telegraph, UK,

The [downed airline] incident comes a
day after sweeping US sanctions
against Russia’s top oil producer and
key energy companies had already
shattered the illusory summer calm on
Moscow’s markets

Raising fears of an investment freeze
and a protracted crisis that could last
for years.

The rebels in eastern Ukraine are
widely believed to be receiving
material support and sanctuary from
the Russian Federation.

The approach of the West has been
to begin the process of integrating
Ukraine into the EU and visit
sanctions on the energy and financial
sectors of Russia.

The end result could be the loss of
financing for many Russian energy
projects.

These actions have perhaps hurt
Russia as badly as the low price of oil.

While Russia cannot unilaterally
chance the price of crude oil it could
stop its adventurism and get some
help in repairing the ruble.

However, is Russian President Putin
does not seem inclined to do so, how
can you profit from a falling ruble?

When Will Oil Recover?

Oil prices are near a twelve year low
as oversupply and worries about
the Chinese economy drive futures
prices down. Deutsche Welle reports
the story.

“Investors have one eye on China,
and all that’s going on there, and the
other eye on oil,” said Erik Davidson,
chief investment officer at Wells Fargo
Private Bank.

“Those two things are keeping
investors on pins and needles right
now.”

Gain Capital analyst Fawad
Razaqzada said he doesn’t see much
hope for an immediate rebound in the
oil price.

“At the moment not many people are
expecting to see a significant rebound
in oil, so prices are continuing to gush
lower to multi-year lows as sentiment
goes from bad to worse,” he said.

International sanctions against Iran
are due to be lifted once the deal over
its nuclear program is implemented.

This would allow Tehran to add a
further million barrels of oil per day to
the existing glut on world markets.

The bottom line is that if the price of
oil does not rise, neither will the value
of the ruble.

For the time being betting against the
ruble is probably the best way to earn
a profit.

As always do your own homework
before trading currencies.

Can You Profit from a Falling Ruble?

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