In our forty years of trading in, watching and commenting upon the forex markets we have truly never seen anything such as what we’ve seen in Moscow in the past two sessions.
As the rouble collapses, so too the Russian stock market, and the sums of capital/net worth being destroyed are stunning. The world’s net worth is imploding and our concerns about things generally are rising. This is an event triggering very real global concerns, and if it has not yet it will – mark our words.
We are convinced that the defence of the rouble is indeed indefensible, although the Russian central bank has several hundred billion dollars still in reserve with which to buy rouble and to sell dollars.
We shall strongly suggest watching what happens should the rouble/dollar rate trade upward again today to 72, the dollar’s intra-day high. If it does, amidst massive bank dollar selling the game shall rush swiftly and violently against the bank. It will be tested and we fear the bank will lose,