Ukraine remains in centre stage - BTMU

FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, remarks the geopolitical risks fom Ukraine as a relevant factor for global markets.

Key Quotes

"Investors were encouraged yesterday by comments from Russian President Putin which appeared to strike a more conciliatory tone. President Putin asked “representatives of south-east regions of the Ukraine and federalisation supporters to reschedule the referendum scheduled for the 11th May”, in order to create the necessary conditions for dialogue between current Kiev authorities and representatives of south-east Ukraine."

"President Putin also backed the Ukraine’s plans to hold presidential elections on the 25th May which he described as a “step in the right direction”, but added that the Ukraine government must first hold talks with separatists in the east and suspend its military operation against pro-Russian groups. However, Nato and the Pentagon have stated that there has been no sign of a pullback in Russian troops from the Ukraine border. The Russian rouble and other local currencies strengthened in a knee-jerk manner following the comments from President Putin, with USD/RUB falling back below the 35.00-level."

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