USD RUB. Fixed deflation for the first time in five years

Yesterday, during the trading session on the currency section of the Moscow stock exchange official dollar exchange rate decreased by 0.1396 rubles and amounted to 66.7420 rubles per dollar. Throughout the day, the ruble gradually strengthened, and become the main driving force in the price of oil, which, despite the increase in stocks of crude oil and petroleum products in the US by 1.4 million barrels, up 3.7%, to 43.43 dollars per barrel Brent crude. Another factor was the fact that, according to Rosstat, in the period from 26 July…

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EUR USD. US data supported the dollar

Index of business activity in the euro zone services rose from 52.8 to 52.9, while the composite index from 53.1 to 53.2, which was a complete surprise, since the expected reductions. In Germany, the index of business activity in the services sector rose from 53.7 to 54.4, the composite is from 54.4 to 55.3. The situation is similar in France, where the index of business activity in the services sector rose from 49.9 to 50.5, while the composite from 49.6 to 50.1. The important thing is that in France the…

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Commodities are actively strengthened against the US dollar

Commodity currencies continue to actively strengthen their positions against the US dollar, ignoring the falling prices of oil, as well as the weak fundamental data on the Chinese economy. According to Caixin Media Co. and Markit, activity in China’s services in July 2016, though growing, but at a slower pace. Thus, the purchasing managers index for China’s sphere of services fell to 51.7 points from 52.7 points in June. As noted in the report, the growth of new orders in the service sector companies has slowed, while employment continued to…

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GBP/USD. Brexit shadow hangs over Britain

The pound strengthened yesterday by more than a hundred points, which was due to several factors. Thus, the index of business activity in the UK construction sector decreased from 46.0 to 45.9, which was welcomed by the market, as the expected reduction to 43.8. But US statistics was not so joyful. Of course, personal spending rose by 0.4%, increasing inflation expectations, however, is not the first month running costs are rising faster than revenues. Personal incomes themselves rose 0.2%, slightly worse than expected. Moreover, if the trend continues, it could…

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EURUSD. When?

Pretty good data on new home sales in the US, which grew by 3.5%, could not lead to the strengthening of the dollar against the euro. This preliminary data on the index of business activity were neutral, so that they could not affect the market. Moreover, the market simply ignored the report of the American Petroleum Institute, which indicated to reduce stocks of crude oil and petroleum products by 8.3 million barrels, which, however, had no effect on the cost of oil. The reason for the incredible stability of the…

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3 reasons why the GBP may fall even lower – Deutsche Bank

“1. Purchasing power parity, which evaluates the exchange rate equivalent to the price of “Big Mac”, between the two countries. Britain is experiencing a shock, which suggests that the GBP will reach the extreme historical undervaluation. 2. An alternative metric – a fundamental effective exchange rate. It estimates the rate needed to restore the country’s current account deficit to equilibrium, which we define as 20-year historical average, or in absolute annual terms, around 40,000,000,000 GBP, or 2.5% of GDP. 3. The main value of the assets. What exchange rate will…

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Something strange is happening in the closing market time

The stock market bounced after the unexpected decision of Britain to leave the EU. Does this mean that investors are willing to take risks again? Hardly. Strong traders risk in the day, but avoid risks overnight. Credit Suiss drew attention to the daily trading volume on the closing market . On average, the volume increased from 8.4% to 9.8% over the last 2 years, which means that traders cut positions before the market closes. There has been a lot of changes overnight The stock market is driven by macroeconomic events that…

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The British Pound continues to suffer after Brexit

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The British pound fell to a new 31-year of minimum on Wednesday, amid fears of a political vacuum and exit of the country from the EU. The currency slipped to $ 1.2796, the lowest level since 1985, after closing at $ 1.2960 on Tuesday. Analysts are concerned that political uncertainty will have an impact on capital inflows and force companies to delay investment, pushing the economy into recession. The Bank of England has taken preventive measures to support the economy and stimulate lending by loosening capital requirements for banks. “As…

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Gold will continue to rise – BlackRock

Gold offers an excellent opportunity to hedge, which means that the metal will show significant growth, says Russ Koesterich of BlackRock. With the fall in bond yields, investors rushed to the precious metals, and gold has added 28% since the beginning of the year. “We are in the middle of sluggish economy and increased volatility. In such circumstances it is necessary a insurance for the portfolio, which is ideal for gold, “- he said. Since the “yellow metal” does not imply yields, investors will suffer considerably if real interest rates start…

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LSE shareholders approved a merger with Deutsche Boerse

On Monday, shareholders of London Stock Exchange Group Plc (LSEG), the operator of the London Stock Exchange (LSE), almost unanimously (99.89%) have approved a merger with Deutsche Boerse AG. The merger would create Europe’s largest securities market operator securities with a market capitalization of more than $ 27 billion. However, there remains uncertainty associated with the position of European Regulators in relation to the merger of two leading stock market operators. Thus, Berlin has insisted that after the decision of the British withdrawal from the European Union (Brexit) the headquarters…

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