Demand for the dollar remains, but the ruble remains stable

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The mood in global financial markets continue to stabilize. There were hints that Washington and Beijing can sit down at the negotiating table that encourages investors, which, however, are not in a hurry to deceive ourselves and the illusions, aware of the continuing risks of further escalation of a trade war. An Asian site showed mostly positive dynamics. In a good advantage of open European markets. After the external background, with a modest gain started the session and Russian benchmarks, despite further sell-off in commodities. Domestic investors are enthusiastically waiting for the summit the US and Russia.
On the oil market, after several unsuccessful recovery attempts resumed sales. Brent, who was unable to cling to the mark of 74, came to the area 73,50 and may again compromise the integrity of the level 73. Players continue to exit long positions on the extinction risk of a shortage of global supply. Meanwhile, activity in the shale deposits of the United States continues to fall, and today’s Baker Hughes data can confirm this trend, if will show the decline or stagnation of the number of active drilling. A key goal of bears now being held in the area of 72,60.
The ruble continues to demonstrate the wonders of the resistance. Currency hardly reacted to the recent collapse in the oil market and continues to calmly watch for a further drop in prices, gaining support on the back of demand for ruble liquidity in anticipation of the tax period and on the background of dividend payments in Russia. Also, market participants do not hide their hopes for a thaw in relations between Moscow and Washington after a dialogue between Putin and trump, which will take place on Monday, July 16, in Helsinki.
In the international arena, the demand for the dollar perked up on Friday. The currency lost some enthusiasm due to the ambiguous statistics on U.S. inflation. Today “American” can support the data on consumer sentiment from the University of Michigan, if you come out higher than forecast. Traders will continue to monitor trade rhetoric in the world.
Nathan Lambert
Head of research,
Global FX