Russia makes actions against US sanctions

They are slowly losing their nerves! Past political events bring new round of sanctions to Moscow announced by the Washington. Reducing exports of goods and technologies – is the aim for opening round of these sanctions.

On the other side, Russia wont remain silent. They are planning to not increase Oil production even there are needs for that action. When we talk about Russian Ruble, it records the highest drop since November 2016 against the USD.

These past news actively contributed strong volatility on USD/RUB pair. Technically, the market is rather overbought. We could see this pair move higher and break the 66.46 resistance level. On the other side, we could see the pair moving lower to the 64.76 support level and aim for the 63.74 support barrier (USD/RUB short position).

Chinese equities touch session highs while the USD weakens

After a strong rally since mid-April, the USD was seen weakening across the board yesterday with many analysts’ makings a case for the greenback beginning to lose steam. On the other hand Chinese stock market rallied strongly towards the close, boosting risk appetite. Analysts were interested in seeing whether there was a connection between the two facts, as the PBOC did not fix the yuan weaker against the dollar yesterday. Most significant came in the Aussie which rallied to a one-week high against the greenback.