The ruble is worthy of holding the blow from falling oil prices

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The start of trading week was marked by worries around the political situation in Italy and the unsuccessful attempts of a rebound of oil. As expected, the positive start of trading a single currency and a rebound in the 1.1730 area was not sustainable. During the European session, the pair lost just over 1%, closely approaching six-month lows to 1.16. The flow of strong US data, signs of a slowdown in Europe and the threat of political crisis in Italy caused the failure of the Euro by 6.5% in less than a month and a half methodical sales.
At the same time, the dollar looks overbought but also to other popular currencies. GBPUSD found support near 1.33, while USDCAD is attempting to turn around the decline from 1.30. Dollar retreats against the yen and stabilized against a number of currencies of developing countries. This combination is very unusual for the markets, as the yen’s rise is often perceived as care in safety. It is quite possible that a brief correction of the currencies of developing countries will again be followed by a new wave of pressure.
Oil after unsuccessful start of trading week, and the failure to 74.60 per barrel of Brent, found support and stabilized around 75.60 in early trading Tuesday. At the same time it is possible that a lull due to the low trading activity, and today more players will connect to sales, reflecting expectations of expanding production in the coming months.
The Russian ruble, despite the collapse of oil, managed to hold on Monday.
The pair USDRUB was only 3 pennies to 62.32 and EURRUB down 17 cents to 72.40. At the same time, the decrease in the Asian platforms in the morning, despite falling oil adjusts to the cautious mood about the prospects for the beginning of the day. Add fuel to the fire of protests in Brazil, driven by rising fuel prices. It makes you wonder whether the current quotes serious obstacle for further global growth. In these circumstances, a major consumer of energy, Asia is also experiencing a decline in the stock price.
The political situation in Italy, caution Asian sites and increased demand for safe assets is likely to keep demand for the dollar today during the day.
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Alexander Kuptsikevich,
Financial analyst,
FxPro