The ruble was trading slightly below zero before fed decision

The ruble was trading slightly below zero before fed decision


Waiting for the rate decision is holding back market activity. The dollar calculations “tomorrow” to 15.02 MSK increased by 0.24 ruble – to 70,18 of the rouble, the Euro rate – 0.24 ruble – to 76,66 ruble.

MOSCOW, 16 Dec. Dmitry Mayorov. The ruble on Wednesday afternoon ranged slightly below zero on the background of the oil is a bit cheaper than 38 dollars per barrel of Brent.

Waiting for today’s fed decision on interest rate is holding back market activity.

The dollar calculations “tomorrow” to 15.02 MSK increased by 0.24 ruble — to 70,18 of the rouble, the Euro rate — 0.24 ruble — to 76,66 ruble, follows from the data of the Moscow exchange.

In anticipation of fed decision

The ruble against the dollar and the Euro on Wednesday afternoon fluctuated at marginally lower, stabilizing after major fluctuations in previous days when the market has been played a dramatic decline of the oil market to the lowest levels since the end of 2008.

However, in anticipation of today’s decisions on interest rate by the fed in the markets have established some calm. Oil has moved away from local lows up to about $ 2 per barrel, and it helped the ruble yesterday also grow slightly from four-month lows reached this week. On Wednesday, the ruble stabilized around levels of achievement.

Some support for the ruble give hope for easing of geopolitical tensions around Russia.

So, the Prime Minister of Italy Matteo Renzi believes that sanctions against Russia will be revised – “not in the next few days, but in the coming months.”

Hopes for positive grow after talks with U.S. Secretary of state John Kerry with Russian President Vladimir Putin in Moscow.

As a result, the dollar and the Euro add up to 30 cents amid low volume currency trading.

Forecasts and recommendations

The estimated increase in the target range of the Federal funds rate of the US by 25 basis points is almost completely included in the current courses of the ruble, said Maxim Korovin of “VTB Capital”.

“However, the session controller passes amid falling oil prices and rising concerns about the situation development on the market of high-yield debt. On a positive note the latest statistics from China that contains some signs of stabilization in economic activity”, — he added.

Markets anticipate the fed meeting, which is expected the rate will be increased at relatively mild comments on future policy, says Dmitry Polevoy from ING Bank.

“This baseline scenario, built into the price, and only significant deviations from this can lead to visible deviations in the prices of assets in financial markets. We do not expect any significant effects on the ruble from today’s meeting, however any negative surprises are likely to recoup through the price of oil and the pair EUR/USD,” he added.