The dollar grows against the ruble, why investors rushed to sale

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Most major global stock indices on Friday closed higher. Russian indices showed mixed trading due to the announcement of new us sanctions. At the end of the day the ruble Mosberg index gained 0.19 percent, the dollar-denominated RTS index on the background of the decline of the ruble against the dollar has lost 0.76 percent. Among leaders of growth “Norilsk Nickel” (+2,11%) and NOVATEK (+1,79%). Among leaders of decrease “System” (-1,52%) and MTS (-1,37%). The Dow 30 increased by 0.82%. On Monday morning, the indexes of the Pacific rim countries together grew by 0.6 and 2.5%. Futures on the S&P 500 index was trading in the morning about 2857 p., 0.67% higher than the closing levels of the previous trading day.
Growing Asian markets and oil set favourable external background before opening the Russian stock market, but it can be balanced by the pessimism of traders associated with the sanctions. As a result, trades can begin neutrally, near to closing levels Friday. Likely day the corridor index Mosberg is in the range of values 2470-2520 points, RTS index — 1185-1210 points.
Due to the announcement of new sanctions on Friday, the ruble has significantly lost value and returned to the levels of mid-March, after strengthening in the second half of the month. At the end of the day on Masuria, the dollar calculations “tomorrow” rose to 65,6375 RUB (+69,75 COP.), and the European currency has grown to RUB 73,6575 (+80,5 COP.). Despite morning growth of oil, the ruble may come under pressure on Monday. The situation will largely depend on the attitude of foreign investors to the public debt. Likely to further pressure on the ruble. The expected daily range for the dollar — 65,0-66,3 rubles., for the European currency is 72.9-74.4 per RUB.
On Friday oil continued to rise, which began on Thursday evening. As a result, prices made new high since March 21, but by the end of the day has continued, and the daily total growth was quite modest. Trading on Friday started at $67.2 per barrel for Brent. After noon, the price broke the resistance at $67,7 and reached $68.2 per. At this level, price quickly reversed, and the end of the day fell to $67,5. The Baker Hughes report on Friday night showed a decline in the number of active oil platforms in the U.S. for eight units to 816 units.
On Monday morning, the traders began to regain these stats, and the price rose to $68,1, almost reaching intraday highs Friday. Likely daily range for today’s trading, Brent crude is $67,4-of 68.5 per barrel. The medium range which is defined by the closest significant support levels and resistance has shifted up to $65,9-of 68.5.
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Vadim Iosub,
Senior analyst at information-analytical center,
Alpari