The dollar took back losses, but a drop of the week will continue

The us dollar managed to recapture part of last week’s losses on Friday during the traditional profit taking after a strong move.

The weakening of the U.S. currency due to fears around the budget deficit in the United States and expectations that soon more and more will the world’s Central Bank to normalize its policy. However, the collapse of the USD last week was too sharp. The trend of weakening the dollar will remain in force, but this path will not be smooth.

EURUSD dropped on Friday and is now traded at 1.24, GBPUSD dipped to 1.40, USDJPY is trading near 106.50. Today, during a very sluggish trading against the backdrop of holidays in China and the United States, the markets continue to recover.

Crude oil adds to the position. Brent is once again trying to climb above $65 a barrel, partly due to increased demand for risky assets, partly due to increased geopolitical tensions in the middle East.

The Russian ruble on Friday has not changed much to the dollar, remaining at 56.40, although shortly before the end of the day fell to 56.16. Positive dynamics of oil in the morning can cause a re-test of these lows. The pair EURRUB sharply (57 cents) fell on Friday, closing a week marked 70. Bears in pairs actively discourage her from important resistance at 72, and which to this repeatedly defended himself from attacks.

Today, the Russian ruble can get support from the dynamics of oil and demand recovery in the stock markets of Asia and Europe. Barring cataclysms that are of interest to the dollar, this week we may witness another test pair USD / RUB support at 56. The chances of a decisive breakthrough of this mark are now much higher than at the end of January.

You may also like...

Leave a Reply