The ruble is growing and surprising stability
The Russian currency is increasing its position. On Tuesday the USD / RUB dropped by 46 cents, and on Wednesday morning continued to fall by another 11 kopecks., to 64.86. EURRUB has lost around 70 kopecks. and today adds another 10 kopecks to decrease.
Earlier in the week, the growth rate of the ruble was supported mainly by the hope to improve international relations. First and foremost, thanks to the reviews Lavrov after meeting with U.S. Secretary of state. In addition, the growth momentum in the global markets was due to return expectations for the trade deal the U.S. and China in the coming months. All you need to be careful with premature conclusions as “friendly rhetoric” in recent years, often contrary to the real action. As we can see, States “the desire to be friends”, while continuing to prepare new sanctions and impeding the construction of Nord stream-2. China and the United States say “ready” and the proximity of the bargain, but only raise rates.
Short-term, it is worth noting the development of the offensive of the ruble after touching local lows at 65.50 per dollar and 73.50 per Euro. The immediate goals of the downside momentum on USDRUB and EURRUB seen at 64.50 72.50 and. However, it is possible and a deeper dive into the area of multi-month lows currency pairs data, and 71.50 63.70.
Among the risk factors – the likely end of the rebound in the stock markets of the USA, which was formed promises, but no deeds. It is able to return the ruble to decline in the future several weeks, this scenario seems most likely.
The material is provided,