the Russian ruble stopped falling and turned to growth after the fed’s decision to launch QE is dimensionless.
At the end of the day, the Russian currency on the Moscow stock exchange has added to the dollar almost half a ruble, to the Euro by almost ruble. The ruble strengthened along with other emerging markets currencies. The Federal reserve’s decision to turn the printing press at full capacity has led to increased demand for risky assets.
Just this week the fed will buy assets at $625 billion.
in addition, optimism contribute news from Italy, where there are signs of a slowdown of the spread of coronavirus. After almost two months of depression, bidders are looking at least some reason for optimism.
oil Prices, however, are still low, a barrel of Brent oil is trading around $28, but additional support for the rouble have sales of currency in the face of the Bank of Russia and exporters who need roubles to pay taxes.
Apparently, back buyers on the debt market of Russia. The composite index of the BFL adds 2% from the lows has increased nearly 6%.
However, this optimism may be short-lived. Any macroeconomic statistics will be a cold shower for investors and speculators, experts say.
Even officials, including IMF chief Kristalina Georgieva called for preparing for a protracted recession that will be worse than the crisis of 2008
Monetary incentives can stabilize the markets, but is unlikely to be the reason for the rally in the current environment.
also, while the Ruble is unlikely to expect a more significant consolidation.
the Price of Brent oil in rubles trading below 2200 RUB. per barrel, and that the levels close to critical.
however, the situation in the oil market is clearly not intended to recover, and just to drive the futures up, speculators are unlikely.
In the conditions where the largest city just stop, it is difficult to expect an increase in energy demand.