Alan Solarsh - Russia-Ukraine War Impact On The Forex Market The DLPR's recognition by Russia has sparked a worldwide reaction, instituting the first set of sanctions. Russia's domestic markets are closed for the holiday, however, offshore trade shows Russian USD debt continues to decline, says Alan Solarsh. A look at how other markets have responded to Ukraine's current situation.
Russia, Sanctions, And The Forex Market There has been a 6% drop in one-month volatility pricing for both the EUR/USD and the USD/JPY throughout the prior 36 hours as President Putin's decision to designate new independent regions and the Russian military incursion into the Donbas region reduced volatility. According to some professionals, the forex trading taxes will boost Russian investors who trade with Russia-based forex brokers, since the inflation rate is increasing. The foreign exchange market can only assume that the Russian intervention will remain at this level. For obvious reasons, the foreign exchange market's performance has been influenced by the closeness of governments and reliance on energy imports (although the Japanese yen has topped this list). Impact On The Financial Markets Oil costs soared over $100 a barrel for the first time since 2014, with Brent reaching $105. Oil prices in the United Kingdom and the Netherlands also rose by 40 to 50 percent. Despite the reduction in oil and gas prices, investors' nerves are still tingling. The sanctions against Russia made it difficult for some of Russia's biggest oil buyers to secure bank guarantees or find ships to transport their petroleum from Russia. Around 35 percent of the natural gas consumed by Europe and 50 percent of the gas consumed by Germany comes from Russia, the world's second-largest oil producer. Bonds linked to inflation - those whose dividends increase in step with inflation - fuelled a rush for the bond market. The global stock market value was reduced by roughly $1 trillion due to investors' concerns about central bank rate hikes, says Alan Solarsh. The main indexes declined for the second consecutive month.