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19 May 2014
EMEA EM Express: Ruble strengthens on Russian troop withdrawal news
FXStreet (Łódź) - According to a statement released by the Kremlin on Monday, Russian troops which had been stationed close to Ukrainian borders have been pulled back. The ruble rose to the highest level since February on the news.
Nevertheless, NATO Secretary-General Anders Fogh Rasmussen rejected the information: "We haven't seen any evidence of Russian withdrawal of troops and I regret that."
Still, the ruble strengthened 0.7% to 34.5110 against the greenback and by 0.6% to 47.3630 per euro, following the release of Vladimir Putin's statement. The Micex Index climbed 1.4%.
Ukraine is preparing for the presidential election scheduled for May 25 and Putin's signals that the forces might be withdrawn may mean an easing the tensions ahead of the vote. But Kiev wants to be ready for any disruptions.
“Special security arrangements will be imposed in the Donetsk and Luhansk regions, as well as other regions where we expect there will be attempts to disrupt the elections,” Interior Minister Arsen Avakov announced. “We will concentrate soldiers sent from calmer regions in the hottest spots.”
According to recent polling, the Ukrainian presidential election front-runners are confectionery tycoon Petro Poroshenko, with a 40% support, former Vice PM Serhiy Tigipko with a 9% backing and former PM Yulia Tymoshenko with 8.8%
Economic data
Preliminary Israeli quarterly GDP data, released on Sunday, showed 2.1% growth in Q1, down from 2.9% recorded in Q4 and a notch below the expected 3.1% rise.
On Monday the Czech Republic published the Producer Price Index, which month-on-month remained flat in April, after dropping 0.2% in March. On an annual basis PPI fell 0.3%, up from -0.8%.
Polish Corporate Sector Wages climbed 3.8% in April, following a 4.8% rise in March and below expectations of a 4% increase.
Technicals
The Russian ruble strengthened 0.7% to 40.2740 against the central bank’s target dollar-euro basket. USD/RUB was down by 0.63% at 34.5547 at the moment of writing.
On Friday the USD/RUB daily FXStreet Trend Index was slightly bearish, with the OB/OS Index neutral. RSI was at 36 at the last close, and has climbed to 41 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 4212 pips, with ATR (14) shrinking at 3052 pips. The 1D 200 SMA was at 33.8868, while the 1D 20 EMA was at 35.2605.
USD/UAH was trading 0.03% lower at 11.7520 on Monday.
Nevertheless, NATO Secretary-General Anders Fogh Rasmussen rejected the information: "We haven't seen any evidence of Russian withdrawal of troops and I regret that."
Still, the ruble strengthened 0.7% to 34.5110 against the greenback and by 0.6% to 47.3630 per euro, following the release of Vladimir Putin's statement. The Micex Index climbed 1.4%.
Ukraine is preparing for the presidential election scheduled for May 25 and Putin's signals that the forces might be withdrawn may mean an easing the tensions ahead of the vote. But Kiev wants to be ready for any disruptions.
“Special security arrangements will be imposed in the Donetsk and Luhansk regions, as well as other regions where we expect there will be attempts to disrupt the elections,” Interior Minister Arsen Avakov announced. “We will concentrate soldiers sent from calmer regions in the hottest spots.”
According to recent polling, the Ukrainian presidential election front-runners are confectionery tycoon Petro Poroshenko, with a 40% support, former Vice PM Serhiy Tigipko with a 9% backing and former PM Yulia Tymoshenko with 8.8%
Economic data
Preliminary Israeli quarterly GDP data, released on Sunday, showed 2.1% growth in Q1, down from 2.9% recorded in Q4 and a notch below the expected 3.1% rise.
On Monday the Czech Republic published the Producer Price Index, which month-on-month remained flat in April, after dropping 0.2% in March. On an annual basis PPI fell 0.3%, up from -0.8%.
Polish Corporate Sector Wages climbed 3.8% in April, following a 4.8% rise in March and below expectations of a 4% increase.
Technicals
The Russian ruble strengthened 0.7% to 40.2740 against the central bank’s target dollar-euro basket. USD/RUB was down by 0.63% at 34.5547 at the moment of writing.
On Friday the USD/RUB daily FXStreet Trend Index was slightly bearish, with the OB/OS Index neutral. RSI was at 36 at the last close, and has climbed to 41 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 4212 pips, with ATR (14) shrinking at 3052 pips. The 1D 200 SMA was at 33.8868, while the 1D 20 EMA was at 35.2605.
USD/UAH was trading 0.03% lower at 11.7520 on Monday.