VIEWPOINT: We see significant risks of week concluding above 67 ruble threshold in dollar pair - Nordea Bank
MOSCOW. Sept 3 (Interfax) - The ruble is down in early trading in the principal currency pairs, declining 15 kopecks in the dollar and euro pairs, Nordea Bank said in a report. The external situation, with an absence of constructive dialogue between China and the United States, a weakening yuan and declines for the pound on uncertainty over Brexit, are creating a very negative atmosphere around risky assets.
"In these conditions, the ruble is still lacking fundamental support factors," Nordea Bank analysts Tatiana Evdokimova said in the report. "We see substantial risks of the week concluding above the 67 ruble threshold in the dollar pair. In the euro pair, the Russian currency has somewhat more chances to maintain relatively comfortable positions. Open long positions on the ruble continue declining and are currently at roughly the level of March of last year. The reduction in the large overhang of long positions reflects the depreciation of the ruble taking place over the past month. Nevertheless, the volume of open long positions still remains quite substantial. If investor attitudes continue deteriorating, there will be space for further liquidation of long positions and, as a result, pressure on the ruble," Evdokimova said in the report.
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