The ruble is falling along with oil

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The ruble has lost ground on Tuesday after failing over to stay away from the oil collapse and weakening markets. USDRUB rose to 33 pennies per day, by opening Wednesday’s trading at the mark of 67.15. EURRUB was up 62 pennies and today in the morning near 76.40.
All attention is now focused on the fed meeting at 22:00 and the subsequent press conference, so the dynamics of the markets during the day can be very discreet.
Among the trends of the first half of the week is to highlight the weakening of the dollar, as the fed is expected to a significant softening in tone and caution in future promotions.
However, this is positive for ruble factor outweighed a few other more important stories.
On Tuesday Brent fell 5%, while WTI rose by 6.5%. Sale intensified after the quotes struck the area of the lows of last month. This weakening is the uncertainty of market participants that OPEC will be able to strictly adhere to the agreed restrictions. While there are growing concerns that the shale boom in the United States is in full swing, reinforcing fears of overproduction of oil. As a result, quotations are at levels where they were in October 2017.
Catches the eye and is an amazing synchronicity: the U.S. indices went back to the area of the lows of the same time, and also turned to decrease in October 2018го.
Such a fall poses a serious threat to the Russian currency. However, it is almost like water off a duck. While the markets live expectations of adjusting the rate of fed policy, support ruble guaranteed. The mandate of the FOMC implies the maintenance of price stability and maximum employment in the United States, and not caring about the world markets, so the current wait though, and have the right to life, they are hardly can be considered as the only possible scenario.
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Alexander Kuptsikevich,
Analyst
FxPro