The currency has plummeted against the dollar

Good morning from Hamburg and welcome to our latest Daily FX Report. At least 132 Pakistanis, most of them children, were killed in the broad daylight attack on the military-run school on Tuesday, an assault lauded by Taliban insurgents as revenge for the killings of their own relatives by the Pakistani army. At least 132 Pakistanis, most of them children, were killed in the broad daylight attack on the military-run school on Tuesday, an assault lauded by Taliban insurgents as revenge for the killings of their own relatives by the Pakistani army.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

Russia´s economic crisis won´t stop the Federal Reserve from dropping a vow to keep interest rates low for a considerable time, economists said, even as policy makers may acknowledge global risks have intensified. Central bankers meeting today and tomorrow may say they are monitoring markets carefully as Russia´s currency collapse threatens to destabilize other regions. At the same time, they will keep their focus on U.S. economic strength and probably replace the language on timing with something that says they are going to be patient with rate rises. The ruble plummeted into a free fall today as panic swept across Russian financial markets after a surprise interes-rate increase failed to stem a run on the currency. That contrasts with a strengthening U.S. labor market and the boost American consumers are getting from cheaper gasoline. Bank of Russia, led by Governor Elvira Nabiullina, unexpectedly raised its key interest rates to 17 percent yesterday from 10.5 percent to stop the ruble from declining. The currency has plummeted against the dollar this year the most of 170 global currencies tracked by Bloomberg. Few, if any, markets are immune from the stress and volatility stemming from the collapse in energy prices and financial turmoil in Russia, where the ruble has tumbled 52 percent this year. Currency volatility hasn´t been this high and liquidity this tight for the past 15 months, approaching levels reached when Federal Reserve roiled markets by signaling it would eventually raise interest rates. The pain main deepen if oil prices keep falling. If brent crude-oil futures slumped to $50 a barrel, from $59.86 yesterday and this year´s high of $115.71 in June, currency bid-ask spreads and market volatility could reach levels seen during the European debt crisis. Crude oil plunged about 45 percent this year as OPEC, responsible for 40 percent of world´s supply, sought to defend market share amid a U.S. shale boom.

Daily Technical Analysis

XAU/USD (Daily)

Looking long-term, Gold has experienced a high volatility and the price moved to a low at around $1130. There doesn’t seem to be a reliable support level, as the price dropped during the last weeks almost by more than 100 dollars. The CCI is showing that the the metal is moving under the Center line is. The price touched recently the highest Fibonacci resistance level (61.8) and was not able to break through it. It is likely that it will try to reach it again.

Support & Resistance (Daily)