Will USD/RUB reach 94.00?

21 January, 2016

Today Russian currency has broken the historical minimums and the USD/RUB pair reached the price of 81.82 at the time of closing. Although the head of the Central Bank of Russia, Elvira Nabiullina stated that “current level of the USD/RUB pair is fair and there is no threat to financial stability”.

Let us remind that the Central Bank of Russia is between two fires. On one side, falling national currency brings the growth of inflation, considering that Russia imports quite a lot of goods. On the other side, growing national currency will bring the inflation down, however it will mean the failure to implement the budget. So there is a choice either to fill the budget or stop inflation. And the Central Bank of Russia together with Russian government are obviously choosing to fill the budget. Therefore a further drop of Russian currency can resume without any active interference of the RBC, as the Oil is clearly looking south.

EUR/USD

We keep waiting for breaking the short term downstream channel for Euro and will be selling the pair on pullback after breaking:

AUS200

The price has broken the upward sloping channel and has returned back to it. We will try selling the index at a current rate.

USD/RUB

There is an interesting picture for the USD/RUB pair: if we look at the weekly chart, it becomes clear that the price has broken the upward triangle. If we take the height of the broken triangle, our target for the broken figure will be 94.00.


Source link  
Another currency to climb the peak

The comments of the FED officials Erik Rosengren and Loretta Mester...

Pound trades look risky

The British Pound rose above the level of 1.24 after the Bank of England decision last week...

Go short!

When it comes to the EUR/USD pair, then we have a descending channel on the weekly chart...


Saudi Arabia reversed a third of its production cuts

Oil tumbled during the trading session on Tuesday after OPEC reported that Saudi Arabia raised output while remaining committed to the quota determined at the last meeting of producers in November 2016...

Dutch Elections: Is Netherlands the next domino to fall?

Trump’s triumph and Brexit not only proved that appealing to the crowd works best in the fight for power but also made populism a catching example for other European countries...

Is Oil going down the drain?

The Oil prices continue to be under the strong Dollar pressure, despite the optimistic IEA forecast on the world energy consumption and OPEC striving to deliver more production cuts...


Will the EU and UK concur?

Some FED members have subtly been hinting towards a spring surprise and last Friday Yellen had no other choice than to agree with the statement...

Is Bitcoin taking over Gold value?

While investors are trying their best to estimate the outlook...

Is Europe back on the recovery path?

Dollar keeps its foothold and consolidates before the breakout of January resistance at the 102 level as Yellen is to deliver a speech at Chicago on Friday. American currency took advantage of hawkish FED policymakers pondering over the March hike...

  


Share: