VIEWPOINT: Dollar could again gain upper hand over ruble - Finam
MOSCOW. Oct 29 (Interfax) - The dollar could again gain an advantage over the ruble in the short term, according to Finam analyst Zarina Saidova.
The end of the two-week Federal Reserve meeting will be the main event of the week. According to the CME Group's tool FedWatch, futures market players are currently 95.1% confident that the Fed will cut interest rates by 0.25%.
"In this connection, we can say that the American central bank has not tried to correct the clearly dovish expectations of the investment community using rhetoric of conflicting tonalities. This means that the Federal Reserve indeed intends to lower the rate. Given that a number of members of the Federal Open Market Committee were against monetary easing in September, even if the rate is lowered, the regulator's comments tomorrow could be restrained, in a hawkish tone. If that happens, the American currency is capable of again gaining the upper hand over the ruble in the short term. It is worth noting that on Friday, October's data on the labor market will come out in the United States, which could affect USD/RUB trends. From the technical point of view, an upward channel is forming in the pair's daily chart, and the exchange rate is feeling out a local bottom at its lower boundary and could rebound from it in the short term," Saidova wrote.
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