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Alexander Kuptsikevich

Forex: Ruble Gains as Oil Falls: The Correlation is Reversed

Yesterday, the ruble managed to keep resistance levels at 60.50 for USDRUB. During the day, the currency pair lost 0.9%, down to 59.68, as oil fell by 1.3% to $61.10 per barrel (Brent). This could be viewed as a clear sign of the Russian currency’s strength, as its movements occurred alongside a decline in oil price. The ruble was seen to decisively lose its dependence on the short-term dynamics of Crude. Essentially, what we saw yesterday was a repeat of the trend observed over the last few ...

Alexander Kuptsikevich

Forex: Ruble Suffers Biggest Drop in More Than a Year

The Russian ruble seems to have run out of luck. Yesterday, the currency lost 1.5% against the dollar and 2.5% against the euro, with this drop coming in as a result of several negative factors. The API reported an increase in oil inventories, which may be confirmed later in the day in the official report. This added pressure on oil quotes, as investors focused on the issue of oversupply amid sustaining high oil inventories. The markets seem set to register profits in assets that have ...

Alexander Kuptsikevich

Forex: USD stronger after positive NFP, wages disappoint

The U.S. Labour market has demonstrated particular strength. The increase in payroll employment to 261K in October, together with the revision of September data to 18K, marks almost the same increase between the -33K reported last month and the 311K increase expected. In addition, the increase in manufacturing jobs by 24K in October is a positive sign as far as the state of the industry is concerned, as is the drop of unemployment rate to 4.1.%. At the same time, average hourly earnings came ...

Alexander Kuptsikevich

Forex: The $60 mark for Brent may not become reality this year

Yesterday, the markets displayed major signs pointing towards a strong oil growth momentum, including Brent price nearing important resistance level of previous highs, anxiety regarding supplies in the Middle East, the dollar falling against most competitors, while U.S. data revealed a significant fall in crude production by almost 1.5 million barrels per day and a drop in inventories by 5.7 million barrels by week, 16.4 in 4 weeks. Yet, this was not enough to send oil to previous peak values. ...

The FxPro Analyst Team

Forex: U.S. Consumer Inflation Data Disappoints

Once again, the U.S. consumer inflation data came as disappointing. Yesterday’s strong PPI raised hopes for a strong CPI release today, yet inflation acceleration did not live up to expectations. The total annual inflation rate rose from 1.9% to 2.2%. Against expectations of reaching 1.8% and still below Fed’s target of 2%, the core figure remained at 1.7% YoY. Retail sales also turned out weaker than expected. Today’s numbers create a picture of slower growth in consumer activity, the ...

The FxPro Analyst Team

Forex: A Brief Look at Gold

Gold has made significant gains throughout 2017 along with several retracements. The rally that started in July has encountered a significant correction in September. This recent correction comes after the market began to show less concern over North Korean/U.S. tensions, with investors "abandoning" the safe-haven as risk-on sentiment returned. The Fed’s hawkish position has also helped put more pressure on Gold with the break of $1,300. Gold has now settled back towards the 50-day moving ...

Alexander Kuptsikevich

Forex: The Fed caused a storm in the markets and explosive growth of USD

The Fed promises to start shrinking their balance from October and has kept the rate unchanged. However, committee's forecasts caused a powerful wave of dollar growth immediately after the publication. The committee is set to hold a third raise this year and expects to face three more rises the next year. In addition, the forecasts for GDP growth were revised up for this year from 2.2% to 2.4%. This is an unexpected turn when many market participants expected to see a downward revision. A ...

The FxPro Analyst Team

Forex: GBP/USD Bulls Test 10-day SMA Resistance

GBP/USD has rebounded around 1.15% since June 12th after the general election slump. On the 4-hourly chart, GBP/USD has been trading above the downside uptrend line support since June 13th. The Brexit negotiations, between the UK and the EU, is set to start today, June 19th. In the short term, the GBP prospects will likely subject to the progression and situation of the Brexit process. This morning in early European session, the bulls have been edging up and attempting to breach the short term ...

The FxPro Analyst Team

Forex: USD/CAD Rebounds from Major Support

USD/CAD has seen a substantial 3.65% slump since May 5th. The FOMC made a hawkish statement on Wednesday evening, June 15th, resulting in a sharp USD rebound. Thus, the USD/CAD downtrend was held above the short term major support level at 1.3200, after hitting a 3-and-a-half-month low of 1.3164, There is stronger support at the level at 1.3200, we will likely see an ongoing rebound as a correction post a slump. On the 4-hourly chart, the price has been moving from the lower band to the middle ...