Why the ruble is not growing
On Friday, the Russian currency had to give up: the USD / RUB pair rose 8 cents, to 65.98. EURRUB jumped by 67 cents to 75.35.
This weakening is primarily caused by the desire of players to fix part of the positions after the rapid movement and signals the beginning of a new wave
the fall of the ruble.
The single currency has progressed rebound on Friday due to the weakening of tension around the issue of the budget of Italy. The government of the country was given to understand that it is ready to dialogue with the European Commission and can reduce “unnecessary” costs. The news helped the EURUSD to rise to 1.14 from the lows of the week (just above 1.12). Disposition to dialogue between Italy and the Commission supports the demand for the single currency, returning the investors ‘ interest in Italian bonds.
On the global Forex market marked a reversal of the dollar to decrease after 16-month highs. It is capable of, in particular, to support demand for the ruble, which has enough potential for a new offensive. Potential targets bulls can be the levels about the ruble below the Friday’s close.
For USDRUB strong support level looks close to a mark of 65, where the pair was deployed to growth in October. Have EURRUB local minima are located near 74.30. It is likely that after Friday’s pause, the ruble will continue its short-term rebound, although this does not change the Outlook for further weakening of the domestic currency until the end of the year.