The EU Morning Report - Ruble Hits New Record Low as Moody’s Downgrade Russian Economy - 20 October 2014
- The euro (EUR) rebounded up to 1.2836 where it formed its resistance before dropping back to 1.2735 against the US dollar (USD). The single currency swing between losses and gains as the European Leaders will attend the EU Summit on Thursday and with main subject the EU economy.
- The US dollar (USD) continues the upside for another day against the Japanese yen (JPY), as it is now trading around 107.30. The yen lost its strength as Japan’s pension funds may increase its holdings by purchasing foreign assets.
- Global equities rebounded after their sharp decline last week. The equities faced a meltdown as investors fear a possible downturn of global economy. The UK 100 (FTS) rose up to 6291, Germany 30 (DAX) climbed up to 8858 and the US 500 (SPI) increased up to 1893.
- WTI Crude (OIL) rebounded up to 84.83 USD per barrel on Friday as Iran and OPEC try to take any necessary steps in order to prevent further drop in oil prices. The energy opened lower for this week’s session and is now trading around 82.43 US dollars per barrel.
Mover & Shaker with forex options
- The US Dollar (USD) continues its rally against the Russian Ruble (RUB) as it reached a new high at 41.14. The Ruble is still under pressure despite the fact that Russia spent 13 billion dollars the last month in order to slow down the pace of ruble’s weakening. Russian’s economy has been downgraded by Moody’s in to Baa2 as their outlook looks weak.
Written by Evdokia Pitsillidou
Currency Strategist at easy-forex®