Hi Everyone,
Sometime between the time that I’m writing to you and the time that you received this message, the European Central Bank (ECB) will deliver its monetary policy outlook.
Now, I could try and guess what they’re going to say at this meeting but frankly, I don’t have a clue, which is a shame because the actions they take today will affect millions of people.
Today’s Highlights
- Mexico’s Loss
- Russia’s Gain
- Crypto Junction
Please note: All data, figures & graphs are valid as of June 6th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Despite Mexico’s best efforts, a deal has yet to be reached to stave off tariffs on their US-bound exports. Talks continue, and Trump is aware that Mexico wants to make a deal, but at the moment he’s overseas.
Meanwhile, President Xi Jinping is over in Russia visiting his “best friend” Vladimir Putin. If there’s a clear winner in the US-China trade war, it’s definitely Russia. Talks between the two reportedly include efforts to promote trade settlements in Yuan and Ruble rather than US Dollars.
We’ve been discussing the de-dollarization trend in our emails a lot over the last few months and this is the biggest official step towards this agenda by far.
Normally, this would be a very Ruble positive update. Selling the US Dollar against the Ruble is an interesting play because it carries a positive rollover.
But, looking at the USDRUB chart it’s clear that we’re well off the highs.
Crypto Juncture
The crypto market seems to be at a critical juncture this morning. At this point, volumes are less than half of what they were during the mid-May surge but still more than double what they were before the April 2nd spike.
The bitcoin blockchain has cooled down as well and is now back below 4 transactions per second.
Mati Greenspan
Senior Market Analyst
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