Top 3 assets to sale, Libra, Trump and Powell

Jun 25, 2019

Describing yesterday cannot fail to mention that the markets are still following the current trends. The short dollar is one of them. The Fed's policy was criticized by Mr. Trump again. Also, praising himself Tump could not but notice that June may be turn out to be a fruitful one. The pressure that has been put on the fed carries a goal, the achievement of which is leading to dollar decrease. A sharp easing of monetary policy in the USA could hit the dollar a lot.

Fed's interest-rate cut is leading to the short dollar. The USA and Iran relations are particularly fraught, against this background, gold became one of the main "beneficiaries" and settled above $1,400 ( has reached a peak since 2013). Nevertheless, we believe that the current price is a deviation from the norm than an adequate and fair price of gold, taking into account the facts available, rather than expectations and rumors. So, gold selling strategy seems to us quite an interesting and promising one. But you need to be aware that sales are at odds with the current market will, therefore, set small stops.

Another interesting and promising position is the sale of the ruble. The information that Russia is planning to spend tens of billions of dollars from the Welfare Fund to revive economic growth (despite the fact that the Fund’s size is already falling rapidly: if its size exceeded 75 billion in 2017, it was less than 59 billion in June 2019). Especially when you consider that last year the Reserve Fund of the Russian Federation was exhausted (more precisely, it was formally attached to NWF, but it changes nothing). The lack of financial resources is so strong that most inviolable stocks are used. And if the oil drops below 35-40, then there will be simply nothing to protect the ruble with.

And the last one but not the least one asset for sale is cryptocurrency (in this case it does not really matter what you will sell Bitcoin, Ripple, Ether or something else). Libra cryptocurrency has injected new vitality into the cryptocurrency market. At least, the current price for leading cryptocurrencies and their dynamics so far are clearly hinted at this. We have already noted that we do not share this optimism. In our opinion, no revolution has happened. Libra is a cryptocurrency and electronic money hybrid, rather than a cryptocurrency. Libra will have both an issuer, regulation, and security (all this contradicts the essence and basic concept of Nakamoto). So the current surge in prices on the cryptocurrency market is a great opportunity to make money on sales. But again, do not underestimate the " crowd madness" and should be ready to move against the open position and being "underwater".

Today we are waiting for the real estate market, data on business activity and consumer confidence statistics to be announced, as well as Mr. Powell's speech.

Our trading preferences for today: we will continue to look for points for sales of the US dollar against the Japanese yen, euro, and pound. We continue to wait for the correction in gold and look for points for its sales. And also we will actively sell the ruble both on the intraday basis and the medium term position.