The Russian stock market began the trading session with a drop

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After the positive momentum on wall street and in Asia, European stocks decided to go its own way and has opened in negative territory. It seems that investors started to seriously disturb the health of the Eurozone economy, which gives clear signals of a slowdown since the beginning of this year. Locally to markets in presses tension in anticipation of the decision of trump on Iran.
On this background the Russian market has started on a sad note, and RTS has lost 0.7 percent, reflecting the dynamics of the ruble, which opened with the gap down, again opening the dollar the path to the test mark of 63 RUB as long as the pair holds above the 20-day moving average in the area of 62,15 RUB, short-term risks are rising.
However, in addition to technical factors, on the behavior of our currency in the coming days will influence the mood in the commodity segment. Tonight, trump will announce its decision on the nuclear deal with Iran, which he probably will decide to leave and again to impose sanctions against Tehran. The reaction of oil prices is going to be very busy. After a brief push higher we could see a correction on profit taking as the market has long been pricing in the impending reduction of Iranian oil exports.
As for the dollar, on its mood can influence today’s speech of the fed’s George W. Bush. Powell, who could give food for thought for traders to guess whether the regulator to raise rates four times this year. Head of the Central Bank can give hawkish comments against inflation, but it is unlikely we will hear a clear hint of a potential acceleration of the pace of monetary policy tightening.
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Sergey Kostenko,
Investment analyst
GLOBAL FX