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FX.co ★ Russian ruble to arouse optimism?

Russian ruble to arouse optimism?

Russian ruble to arouse optimism?

The countdown for the new 2017 year is already underway. Alongside hustle and bustle of traditional sales, the Russian nationals are keen to unveil the mystery and predict further swings of the Russian ruble. As the Russian currency was on a roller coaster since late 2014, people are suspicious about the ruble’s stability in the year end. According to the Kremlin’s stance, two major factors are posing a threat to Russia’s economy. These are Barack Obama, the main catalyst for sanctions, and a slump in oil prices. Obama’s term in the White House expires in January. However, the oil market is still facing volatile trading. Therefore, the accurate outlook for the ruble is problematic even in the short run.

The OPEC production cut deal involves participation of other large oil producers, including Russia. The joint efforts provided oil prices with support. The oil market cheered the historic agreement to tackle the global oil glut. So oil prices responded with a sharp rally that is certainly bullish for commodity currencies like the ruble. Besides, the key principle of Russia’s central bank is to avoid abrupt swings of the national currency. To sum up, some fundamentals indicate promising prospects for the ruble. Logically, most traders are betting on the stronger Russian ruble. A month ago, the ruble hit new yearly highs attracting bulls. However, they had to sell off a weakening ruble a bit later.

This year, the Russian ruble has been acknowledged among best performers by Bloomberg. The ruble has gained 14% in 2016, the best performance in emerging markets after the Brazilian real and the South African rand. At the same time, the ruble still remains susceptible to risks including the flare-up in hostilities in Ukraine and Russia’s involvement in Syria’s campaign. Time will show which factor will outweigh and determine the ruble’s dynamic in the new 2017 year.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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