In the Forex Weekly Forecasts segment, we provide insights and observations from financial experts for the latest trends in the foreign exchange market. This helps you to predict the latest price movement easily.
USD/RUB – US Dollar Russian Ruble
The Russian Rouble traded higher on Monday by 3.70% against the US dollar on the prospects of diplomatic solutions and the continuation of peace talks. The appeal of the Russian government regarding the payment in Rouble or Euro against the natural gas and petroleum exports has temporarily strengthened the Rouble.
Currently, the USD/RUB is currently trading at the 97.62 mark. From a technical perspective, the price action of USD/RUB has formed a double bottom chart pattern on the daily chart. This indicates a bullish bias in the market. For the upside, bulls may target the major resistance level at the 100.00 mark.
EUR/USD – Euro US Dollar
The euro is directionless On Monday ahead of the peace talks between Russia and Ukraine. Investors are waiting for the Germany GfK Consumer Confidence data, Germany Retail Sales, Unemployment Change, Unemployment data which will be reported on Tuesday and Thursday respectively. The ongoing war between Russia and Ukraine has now entered the 6th week causing a major refugee crisis, high inflation, and expensive energy prices. This has boosted the demand for the U.S. dollar while undermining the Euro.
The near-term fundamental outlook for the euro remains bearish. The EUR/USD Price is trading well below the 9-day and 18-day exponential moving average, indicating a bearish sentiment in the market. Therefore, one must look for potential selling opportunities in EUR/USD if the price fails to sustain above the 1.1000 mark.
GBP/USD – British Pound US Dollar
The British pound extended its decline towards the 1.3100 mark On Monday due to the renewed strength in the U.S. dollar. The dollar index which is the benchmark for the value of the U.S. dollar against six major currencies is trading higher by 0.4% near the 99.220 mark. The British pound remains more exposed against the strength of the U.S. dollar amid the volatile energy and commodity prices.
The US employment report, due on Friday, will dictate the next course of action from the Federal Reserve. The absence of any major economic data from the UK may cause the GBP/USD to trade sideways in the meantime. The pair May recover after dovish stands from Bank of England’s Governor Andrew Bailey’s speech at 11:00 GMT.