Ruble rose on Monday against most major rivals, hitting 2015 highs against dollar as the Russian currency continues its stellar recovery from the post-Ukrainian invasion collapse.

It has reached a state of concern for the Russian Central bank, as a stronger currency weakens export values.

The stronger a currency the less attractive its products would be price-wise to holders of other currencies.

Ruble rose 1.7% today against dollar to 55.44, with yearly gains mounting to 35% so far.

The Russian economy teetered on collapse throughout the year, after harsh sanctions by European and US governments, especially on the banking sector.

That crashed Ruble to 150 against dollar, before the central bank hiked rates by a double to 20% and imposed limits on withdrawing cash outside the country.

What truly helped out was Russian President Putin's decision to force buyers of Russian gas and oil in the west to pay with the Ruble for the contracts. 

Now the Russian central bank is back to cutting rates by nearly 10.5% very quickly as the economy and the currency stabilize. 

Oil prices declined in European trade for another session with Brent plumbing five-eek lows on concerns about global growth.

Prices are also pressured by increasing US oil rig count, boosting US production.

Global Prices

US crude fell 1.5% to $108.42 a barrel, while Brent declined 1.75% to $111.58 a barrel, after US crude lost 6% on Friday, while Brent lost 5% back then, the largest such loss sine May 9.

Global oil prices declined 7.5% last week, the second weekly decline in a row, and the largest such loss since March,

Global Economy

As global central banks continue to tighten policies to control inflation, fears are spreading about a slowdown in growth rates.

A global contraction would obviously harm demand on oil and hurt prices.

Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.

Oil rigs rose in May for the 22nd month in row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.

Major European stocks declined on Friday to 16-month lows on track for the largest monthly loss in two years. 

The decline in European stocks triggered questions about the path forward for European stocks.

We here expect European stocks to mark even more losses due to the ongoing Ukrainian crisis, while the ECB prepares to hike interest rates, and amid political concerns in France.

Dow Jones Stoxx Europe

Dow Jones Stoxx Europe slid to 401.92 on Friday, the lowest since February 2021, while losing nearly 8.5% in June, on track for the third monthly loss in a row, and the largest since May 2020.

Ukraine

The Ukrainian crisis obviously hit growth prospects in Europe, with the economy expected to sustain more losses as time goes by.

The ECB

The ECB maintained rates at the June 9 meeting at zero, while announcing plans to end monetary easing programs by the first of July, and hike rates by 25 basis points.

Lagarde 

ECB President Christine Lagarde is testifying ahead of the European Parliament later today, expected to offer clues on the future of interest rates and European policies. 

Now markets expect the ECB to hike rates by 25 basis points in July, and another 25 basis points in September to control inflation. 

Markets expect a total of 1.25% hike of rates in Europe in the next four policy meetings for the ECB.

France

In France, President Emanuel Macron's party failed to acquire absolute majority in Parliament, triggering concerns about his ability to pass his economic programs.

Such developments will no doubt impact economic reform plans intended by Macron.

Gold prices rose in European trade off four-week lows on track for the third profit in four days as the dollar index declined against major rivals. 

Calm trading dominates the market due to the ongoing bank holiday in the US. 

Prices Today

Gold prices rose 0.4% to $1,846 an ounce, after losing 1% on Friday, the first loss in three days as the dollar recoups against major rivals. 

Gold prices lost 1.75% last week, the second weekly loss in a row, and the largest  since May. 

The Dollar

The dollar index fell 0.4% on Monday on track for the third loss in the last four sessions on active profit-taking off 20-year highs against major rivals. 

No analysts doubt another 0.75% rate hike by the Federal Reserve in July, in turn dampening demand on the greenback. 

A holiday

The US markets is closed for a public holiday today for the Independence Day, leading to some shortage of liquidity. 

The SPDR 

Gold holdings at the SPDR Gold Trust rose 11.6 tones, the largest increase since March 1, to a total of 1,075 tones, the highest since May 9.