I talked about USDRUB last week and this morning we saw price hit highs (again) with price just falling short of 58 Ruble to the USD.
As I explained in the video I thought 54 might be the line the Russian Central Bank drew in the sand…but from the last few days action it would appear not.
As you’ll know when it comes to Geo-political events I’m usually quite bearish. I appreciate that I’m sounding more and more like a 1930’s Winston Churchill – just the sad old man ranting away on the back-benches – but I do worry about how these events will turn out. I’ve never forgotten one of my mentors telling me there were three stages of warfare:
1. Currency Way, which leads to..
2. Trade War, which leads to…
3. Physical War.
With the present slide in the Ruble, the economic sanctions and the oil price war (that’s what it is) it might be said that we’ve already conducted stage 1 & 2 against Putin / Russia.
Sorry for not being more cheerful at Christmas!