The ruble is gaining strength before the week of Central Banks

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At the end of trading Wednesday, the ruble strengthened slightly against the dollar and slightly weakened in tandem with the Euro, reflecting trends on the international Forex market, where the single currency is growing on expectations of tightening rhetoric of the ECB, and the dollar continues to retreat due to the lower yields of treasuries and trade conflicts trump with other countries. The pair dollar/ruble for the first time this month closed below $ 62 RUB, which remains the epicentre of modest fluctuations, and no changes in the balance of power still occurs.
The ruble locally responds to the mood in the commodity segment, where the second half of the day the pressure on the quotes of Brent eased somewhat. However, in General, black gold remains vulnerable, which does not give confidence to our currency. Until the beginning of the week the dollar is to the downside, and the main merit in it belongs to the “American” – a demand for the dollar gradually fades away against the revival of the European currencies. This trend keeps the ruble from subsidence, as the expectations of the inactivity of the Central Bank of the Russian Federation at the next meeting, which will take place at the end of next week.
As for the prospects before the end of this week, it is possible that players will refrain from purchases of the ruble before the long weekend in Russia. Moreover, there is a danger of profit-taking, especially in the event of a resumption of sales on the oil market. Another excuse to reduce the risks – the coming week Central Banks when we have the meeting of the fed, the ECB and the Bank of Russia. So after the holidays the ruble exchange rate to manage monetary policy mainly. The key risk to our currency on that front, potentially hawkish rhetoric of the American regulator.
Igor Kovalyov,
InstaForex companies group