Friday, October 16, 2009

The euphoria surrounding ruble is close to completion

Financial Analyst FxPro Alexander Kuptsikevich: This week the markets remained within the previous trends, and the second half of the week was marked by profit taking. Euro rose to 1.4966 to the dollar, however, on Thursday and Friday, growth has not continued. Two years ago, with this level pair Eur / Usd was thrown back into the six figures down for four months. This is probably inhibits players from strong buying the single currency. Broken trends in the yen and the pound, to identify profit-taking in gold.
Just this week there was another significant event for Russia: Oil vybilas beyond the corridor 65-75, referring to the level of $ 78 per barrel. Since June, despite optimism about the global economy and pessimism on the dollar, it did not receive samples above 75 dollars. For the ruble has become such an event determining the course of bidding. Shopping at the opening of a failure immediately to 35.45, although he was "caught up" and returned to more normal levels in 35,80. Ruble was able to add to the dollar (up to 29.33 against 29.45 to close yesterday), and the euro, albeit briefly, and later commits a little below 43,80.
Despite the euphoria over oil and the ruble should be cautious in assessing the future prospects. Rising oil prices to 77 dollars is technically no more than a correction of the fall from 147.2 to 33.2. Fundamentally, demand for energy by importing countries remains weak because of the huge accumulated "on the cheap" stocks. Consumers in the country continues to reduce its costs, an illustrative example is zero inflation in the past two months.
After some correction of the euro is likely to continue to grow, thanks to strong investment demand for the currency. After a long building at the expense of speculators, the ruble may run into strong support near the level of 35,80 rubles to the currency basket. After that, the market usually reverses direction, trying the strength of one after the other levels of resistance. The immediate aim of the pair dollar / ruble - 29,60 and 30,30 further.

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