The Russian stock market has decided to use improvement of the external background

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The new week began with good news for risky assets – the US and China have agreed to do without the trade of war and to resolve contradictions in a constructive way. Asian investors responded enthusiastically to the news, passing the baton to European sites, which, however, traded in part because of local holidays. The Russian stock market has decided to use improvement of the external background and showed a good rise at the opening of the new corrective signals to the oil market. After the first hour of trading the index of Mosuri and RTS increased on average by 0.5%, although the dollar benchmark seems less confident due to foreign exchange factor. Ruble, yielding widespread dollar rally, is trading on the downside.
The Russian currency remains weak amid the continuing occurrence of dollar bulls and a General decline in the attractiveness of assets in developing countries due to the rising dollar rates. The dollar on Friday settled above 62 rubles and in the near future may test the local resistance in the area of 62,60 RUB, which will open the way to RUB 63 to Limit the pressure on our currency can tax payments, but significant support on that front should be expected. The bearish scenario for the ruble will worsen if Brent will go for a deeper correction after failed attempts to breakout of the level 80.
The dollar this morning sent the Euro to new lows this year. Pound also noted at the end of 2017 and came close to the danger mark of 1.34. For “British” in addition to the dollar presses the situation with Scotland, which has decided to remind of itself and announced the holding of a second referendum on independence. Also unresolved is the question with the Irish abroad – all this increases the uncertainty, oppressive lb. The loss of the 1.34 level may lead to more aggressive sales of the pair.
Sergey Kostenko,
Investment analyst