EUR / USD – dollar wins back positions
The euro against the dollar in the forex market set a new annual maximum near the level of 1.2280, but the quotes failed to continue the bullish rally. At the final meeting this year, the US Federal Reserve kept the discount rate at 0.25% and did not expand the economic stimulus program, leaving it at the previous $ 120 billion a month. The regulator’s decision gave investors a reason to liquidate long positions at the end of last week, and news of a potential lockdown in Europe due to a stronger strain of coronavirus increased demand for the dollar as a defensive asset. due to the new form of the coronavirus, the demand for the dollar as a defensive asset has increased. Thus, the upcoming Christmas week may be marked by the strengthening of the American currency.
The EUR / USD pair continued its medium-term upward trend towards 1.2300. The support for the market is the area 1.2000-1.2050.
RUBLE – external negativity “hit” the national currency.
The Russian currency opens the weekly session with a sharp drop. A new strain of viral infection found in the UK has led to an increase in restrictive measures in the EU, hitting oil prices: quotations of Brent in London fell below $ 50. At the same time, the US dollar sharply appreciates against most currencies in the world, putting pressure on the currencies of developing countries.
At its meeting last Friday, the Bank of Russia kept the discount rate at 4.25%, noting that inflationary risks were growing. According to the regulator’s estimates, the inflation rate by the end of 2020 may exceed 4.5%, which will prevent a soft monetary policy course for the next two quarters of next year. In this case, the yield on Carry trade operations remains attractive for medium-term investors.
The USD / RUB pair has formed an intermediate bottom at the level of 72.70 rubles and forms a rebound to the resistance of 76.60 rubles per dollar.
The EUR / RUB pair is crossing the support of 90 rubles again and is ready to continue growing towards the highs of 94 rubles per euro.
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This information is not investment advice.