The ruble is recovering, the market ignored the decision on VAT

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The ruble continued to recover during the afternoon trading on the Moscow exchange. The U.S. dollar Tuesday in the middle of the day is 62,81 RUB and decreases by 0.4%. Euro retreats also by 0.4% and is trading at 73,46 RUB Official rate of the Bank of Russia on Wednesday, 25 July, downgraded to majors and make 62,92 RUB to US dollar and 73,52 RUB for Euro. Courses are reduced by 27 and 60 cents, respectively.
Commodity market is actually hanging in space. A barrel of North sea Brent crude oil day rises by 0.25% and costs $73,24. The market is clearly trying to gain a foothold in the corridor of $72-74, which seems quite logical. Investors ‘ attention is focused on the publications API and the US Department of energy, which is scheduled for today and tomorrow night respectively.
Rouble supported demand of the companies and enterprises within the framework of the tax period, whose peak is in the future. The market is completely indifferent as to the agreement of terms of pension reform, and to the approval of the state Duma of the idea of raising VAT from next year. Market regains local history, but deeper looks: either in the auction no long-term investors or traders are just afraid to get ahead of ourselves here.
Wednesday ruble pair will still enjoy support from the tax payments, then investors will pay attention to auctions of the Ministry of Finance on placement of OFZ. While there is no current information about the planned volume of placement, the previous two auction was located in the high – 40 billion roubles in each case. Strong demand for Russian debt securities to support the ruble.
The US dollar closed trading Tuesday at about 62,70-63,45, the Euro finishes in the range of 73.30-74,25 RUB.
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Anna Bodrova,
Senior analyst,
Alpari