USDRUB Reverses Sharply
The US Dollar has fallen almost 21% against the Ruble today and is now down around 42% from the all time highs printed earlier this month. The driver behind the reversal in USDRUB appears to be news over the weekend that Russia will now demand all “unfriendly” countries make their oil and gas payments in Rubles instead of foreign currency. Such a move, if carried out, would obviously create strong, natural demand for RUB.
The initial response from G7 countries has been an immediate refusal to make payments in RUB. However, given how reliant most of the eurozone is on Russian energy ( receiving around 40% of its gas from Russia), the costs of going against Russia, and further disrupting supplies would be heavily damaging to individual economies. However, some member states, such as Germany, have called for eurozone countries to speed up the pace at which they can find independence from Russian energy in a bid to avoid surrendering to Putin’s demands.
Technical Views
USDRUB
The reversal from ATH has seen the trading back below the long-term bull channel top. With indicators flipping bearish here, the momentum is clearly to the downside now. Price has broken back beneath the key psychological 100 level, putting the focus on a test of the 83.08 level next and the 80.17 level below.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.