Investors took a pause, the ruble continues to prevail over the dollar

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After the vague dynamics of the Asian stock indices, Europe opened moderately higher. Interest risk in world markets remains, but the enthusiasm investors have definitely diminished. The theme of the trade war has been on the back burner, and meanwhile in Britain, the brewing political crisis, which risks to undermine the already weakened position of the Prime Minister may. If the situation continues to develop in a negative way, the FTSE 100 and sterling will be under pressure.
Russian indices started with an ambiguous attitude. RTS tried to grow, but soon went into negative territory. Index Mosberg losing 0.3 percent. After yesterday’s rise, the extinction of the pulse at the deterioration in the external backdrop looks quite logical and is written off in profit taking. If the European benchmarks will not be able to gain a foothold in the area of growth, downward pressure on the domestic indices may increase during today’s session.
The dollar drew demand at the end of yesterday’s trading session and is trading almost unchanged in the major currency pairs. The ruble at the opening continued to strengthen, sending the American to new July lows in the area 62,33 RUB where the couple is trying to develop recovery. The position of the Russian currency strengthened due to the overall decline in the attractiveness of the dollar, and against the backdrop of high oil prices. Brent is committed to the mark 79 on fears of supply shortages and scant spare capacity in the world. Today’s data API can point to the reduction of crude oil reserves in the US, it would reinforce the bullish pressure on the prices.
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Nathan Lambert
Head of research,
Global FX