The ruble has found a reason to recover, the dollar took a break

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Asian markets got a reason for renewed growth – the United States invited China to resume trade talks, Beijing welcomed the initiative, accepting the offer. The decline of tensions between the two countries opened the way for the resumption of purchases in the segment of risky assets. Stock indices of the Asia-Pacific region showed a good recovery, but the European benchmarks in the beginning of the session behave modestly.
Italy’s FTSE MIB slipped 0.3% after it received reports about the threats of the Minister of economy and Finance of Tria to resign because of disagreements on the budget. It has limited the positive reaction of the indexes of the Old world for the General improvement of sentiments on global markets.
The Russian market started in positive territory, continuing the recovery. RTS already rises to 0.5% and can score defense during the day, if the ruble continues recovery. The us dollar opened with a gap down and is testing yesterday’s session lows in the area of 68,50 RUB Russian currency helps the renewed interest in risk, the General prerequisites for the weakening of the dollar in the Forex market and high oil prices.
However, in the second half of the day, changes in dynamics can contribute to inflation in the USA, because if the figures come out higher than forecast, “American” will grow across the entire spectrum of the market, including against the ruble. Considering keeping the risk of sanctions, the threat of a resumption of sales “wooden” is still pretty big.
Brent crude is trading with a slight downside bias after yesterday’s attempts to test the key level of 80. Hurricane Florence weakened to the second category, and fears about disruptions in the production waned, which, coupled with technical factors slowed down the rally in oil prices. The overall sentiment in the commodity sector remain positive, and the unwillingness of the price to deepen the correction is confirmed.
Forex main attention today will be focused on the ECB meeting and the Bank of England, which will give the further motion vector Euro and pound. The mention of the monetary authorities on the risks to the economy, trade wars can put pressure on the European currency.
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Nathan Lambert
Head of research,
Global FX