Major FX rates drifting sideways heading into yearend as crude oil plunges

December 29, 2015

Lee Hardman, Currency Analyst at MUFG, suggests that the major foreign exchange rates have remained relatively stable during the holiday period. 

Key Quotes

“Emerging market currencies have continued to underperform so far this month. Renewed weakness in the Russian rouble has been most notable so far this week lifting USD/RUB to its’ highest level since the same period of last year. The rouble has been undermined by the renewed weakness in the price of crude oil which has fallen by around a fifth so far this month.”

“The rouble appears fairly valued based on the lower price of crude oil according to our short-term regression model. The renewed decline in the price of crude oil has lifted our model’s valuation estimate for USD/RUB by around 5 big figures so far this month. The Russian equity market has also lost around 15-20% of its value during this period. Developments in the price of crude oil will remain in close focus in the New Year to see if renewed weakness is sustained. Crude oil exporting countries such as Russia will face even larger negative economic shocks if oil stabilizes at current lower levels favouring weaker domestic currencies to support the required economic adjustment.”

Publication source
HYCM information  HYCM reviews

December 7, 2016
CAD claws back ground
The Canadian dollar has finally managed to gain some ground against the strong USD after weeks of the market waiting for it to react to oil prices beginning to show some turn after the recent OPEC agreements...
December 6, 2016
Cash rates remain on hold at 1.5% as expected
Asian stock markets managed to move mostly higher, after gains in Europe and on Wall Street yesterday. The Italian MIB closed with slight losses Monday, but it seems investors quickly got over the widely expected rejection of Italy’s constitutional reform and Renzi resignation...
December 6, 2016
AUD fell on RBA statement
The Reserve Bank of Australia decide to leave its policy settings unchanged. Such a decision was widely expected. The main, cash rate was left unchanged at 1.5% as expected by every analyst surveyed by Bloomberg...

HotForex Rating
Grand Capital Rating
 FXTM Rating
Fort Financial Services Rating
Tickmill Rating
FBS Rating

TopOption Rating
24option Rating
EZTrader Rating
OptionFair Rating
Anyoption Rating
Beeoptions Rating