The ruble will fall before the long weekend in Russia

  • And
  • +A

On Tuesday, June 5, at the end of the trading session on the Moscow exchange rate of the us dollar calculations “tomorrow” increased by 9 kopecks (+0,10%), to 62,15 Euro – by 19 kopecks (+0,26%), to 72.80 RUB Trading volume in the pair dollar/ruble amounted to $3.6 billion (+63,63%), and Euro/ruble – 445,2 million euros (+from 41.06%)
The Bank of Russia from June 5 to set the official US dollar rate to ruble at the level of 61,929 RUB below the previous close by 27.66 Official COP.
Euro to ruble exchange rate was fixed at 72,4384 RUB compared to the previous value, the rate decreased by 27.99 COP.
Trading on the ruble opened higher. The Russian currency was in positive territory for about three hours. She could not ignore the fall in the value of Brent crude oil by 2.39% to $73,80 per barrel. The dollar rose to 62,46 Euro – 72,89 to RUB.
Oil fell on information that the US has asked Saudi Arabia and some other OPEC members to increase oil production by 1 million barrels a day.
On the American session, the pair dollar/ruble retreated from session high at around 62,46 RUB, returning to 62 rubles In the second half of trading, the rouble got support from rising oil prices amid a General weakening of the U.S. currency.
On Tuesday at the global currency market locomotives for the principal currencies were the pound and the Euro. The pound rose against the dollar after the publication of strong data on business activity index in the British construction sector, Euro on rumors that at this meeting the ECB will discuss the tapering of QE (buying bonds).
Wednesday, June 6 in Asia, oil is traded in plus 0.49%. Still on ruble pairs expect the price consolidation at current levels in the range of 1 ruble. Don’t forget about the upcoming long weekend in Russia. Before them, many investors will want to exit the trade to protect himself from unfavourable price fluctuations after the opening of the market on 13 June. Their actions will have a negative impact on the ruble.
____________
Vladislav Antonov,
Analyst
Alpari