The ruble may sharply fall off at the opening of trading

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The ruble will have a difficult start of trading on Tuesday. Global markets came under pressure on fears before the global economic slowdown, losing more than 1% since the beginning of the day. The main trigger for the decline was the deterioration of the IMF forecasts for growth rates in the Eurozone and China in 2019 and 2020.
Even more dangerous for the Russian currency that oil is losing ground, declining by more than the percentage of the area of the December highs. Similar cravings to profit-taking after the rally we are seeing on the key stock indices.
Even worse that the Russian currency last week reached its own resistance area. As a result, even though growth in Asia on Monday, the ruble has lost ground. Turning to the decline in foreign stocks can reinforce this fact, as the internal factors are ideally combined with the external pull investors away from risk.
On the world currency market drew the attention of a gradual strengthening of demand for the dollar. Despite cautious comments from fed officials, yet, in comparison with other economies, the USA is showing good form. The updated IMF forecasts also confirm that, assuming GDP growth at 2.5% vs 1.6% for the Eurozone.
Thus, the chaotic sale of the ruble on Tuesday is likely to gain momentum pushing the Russian currency from local maxima close to 75.5 per Euro and 66.40 per dollar with the immediate important levels of attraction in close proximity to 76 and 67, respectively.
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Alexander Kuptsikevich,
Analyst
FxPro