With what news the Markets will open on Monday?
World investors are waiting for the outcome of the referendum in the Crimea. Concerns about the developments in Ukraine and signs of weakness in China’s economy have boosted the yen on Friday. Euro has remained weak after comments from European Central Bank, that suggesting about further easing of monetary policy in the Eurozone. Australian Dollar has remained in an uptrend in Asian trading on Friday.
Outcome of the referendum on Sunday could support the decision of Crimea’s secession from the Ukraine.
Risk of escalation in the region has increased when Russia on Thursday decided to hold one more military exercises near the Ukraine. As Russian forces has taken control of Crimea on February, 28, markets in Moscow fell to the levels of the early global economic crisis.
U.S. Secretary of State John Kerry said on Thursday that Russia “may” eventually annex the troubled region and made it clear that if that happens, the United States and European allies getting ready to take “some very serious steps” on Monday.
The application of economic sanctions against Russia “will force Moscow to sell their assets in dollars and euros, – he said. – This, in turn, could lead to further strengthening of the yen.”
Ray Attrill, chief currency strategist at National Australia Bank, said that the currency markets are on the edge before the vote on the Crimea. He also added that a series of poor economic performance from China is a potential threat to the Australian dollar.
ECB President Mario Draghi said that the central bank is ready to take additional measures to protect against the risk of deflation in the euro area. New easing in monetary policy will keep interest rates at low level for weakening the demand of euros.