16 Dec 2014
Volatility driven by oil continues - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analysts at FXStreet noted that the markets experienced high volatility this Tuesday, with oil and the Russian Ruble being the main drivers.
Key Quotes:
“As for the first, the crude futures fell below $ 55.00 whilst Brent quoted below $ 60.00 a barrel, spurring risk aversion across all the financial assets”.
“When it comes to the second, Monday intervention from the Russian Central Bank was not enough to prevent an over 1000 pips rally in the USD/RUB advancing 20% in just four hours”.
“The collapse in both, RUB and OIL boosted the demand for safe-havens, with JPY standing as the overall daily winner. In the fundamental front, European data beat expectations, supporting EUR advance, while US housing readings missed expectations”.
“On Wednesday, the FOMC will have its last meeting of the year, and market expectations are of a change in the wording when it comes to maintain rates at record lows and lose the words “considerable time.” If that’s the case, the USD can regain the ground lost these days, yet if the FED disappoints, the dollar sell-off will likely extend into year-end”.
Key Quotes:
“As for the first, the crude futures fell below $ 55.00 whilst Brent quoted below $ 60.00 a barrel, spurring risk aversion across all the financial assets”.
“When it comes to the second, Monday intervention from the Russian Central Bank was not enough to prevent an over 1000 pips rally in the USD/RUB advancing 20% in just four hours”.
“The collapse in both, RUB and OIL boosted the demand for safe-havens, with JPY standing as the overall daily winner. In the fundamental front, European data beat expectations, supporting EUR advance, while US housing readings missed expectations”.
“On Wednesday, the FOMC will have its last meeting of the year, and market expectations are of a change in the wording when it comes to maintain rates at record lows and lose the words “considerable time.” If that’s the case, the USD can regain the ground lost these days, yet if the FED disappoints, the dollar sell-off will likely extend into year-end”.