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

29 December, 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.”


Source link  
Gold holds steady below 2 month highs

Rising diplomatic tensions continue to underpin safe-haven demand. Subdued USD price-action remains supportive of a mildly positive tone. A modest...

USD/JPY remains in daily range

Struggles to build on overnight strong up-move despite a goodish USD rebound. Bulls tracked retracing US bond yields, tough risk-on mood...

US Dollar Index challenges recent tops

The index rebounds from tops and tests 95.70. Yields of the US 10-year note ease a tad from peaks around 2.90%. US trade balance figures next of relevance...


USD losing ground in the longer run

USD weakness came to a halt yesterday after the Fed's Kaplan emphasised the central bank's independence, thus reassuring markets that

GBP/USD on the offers around 1.2750

Brexit uncertainty, Turkish contagion fears leave the higher-yielding GBP vulnerable. Attention turns to Tuesday UK jobs report amid empty docket today...

Gold bears await a break below

The commodity extended last week's rejection slide from $1235 horizontal resistance and remains within striking distance of an important horizontal...


Gold near term weakness

Gold has fallen to a yearly low, as it lost around 4% in June itself (end-of period prices), contrasting sharply with the above $13000/oz. price performance in the early part...

Dollar holds weaker below mid-94.00s

Fading German political uncertainty lifts EUR and prompts some weakness. Flattening of the US yield curve further collaborates to the weaker tone...

FOMC will raise rates today

At this point, it would be extremely surprising were the Committee to forego a rate hike. Economic data have indicated accelerating activity over the...


In the past 24 hours Bitcoin has lost -0.09% and reached $6475.15278047. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 2.96% and is now at $204.148075416. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: