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Hardy: The risks of ruble trading
The ruble has recovered a little against the dollar this Tuesday after tensions appeared to ease in the Ukraine crisis. However, Saxo Bank's Head of FX Strategy, John Hardy, says medium to long term risks are still very high. He says it's as if the market is trying to find some sort of equilibrium after the initial shock at the weekend.
Any escalation in tension or potential trade sanctions would be critical for the Russian currency and could lead to a real crisis for the country's banks. On Monday the Russian Central Bank raised interest rates by 150 basis points and spent billions of dollars in reserves in an effort to prop up the rouble.
Ruble currency pairs are easily traded on platforms such as Saxo Trader. John says you have to be extremely cautious as they're less liquid pairs compared with euro dollar, for instance. It's also a very headline prone market, he says, so swings can be "gappy" and non continuous at times.
02:07 minutes
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