The fallout from the last Federal Reserve meeting is that the FOMC has taken a hawkish tilt. The dot plot betrayed more FOMC members seeing sooner interest rate hikes coming from the Fed. The immediate reaction was USD strength as Fed’s Chair Powell also recognized that inflation pressures may be more significant than they originally thought.

 

This fundamental shift is likely to play out over the coming weeks and months.

Over the last 14 years, USDRUB has gained in value eleven times between June 18 and August 12. The largest gain was in 2015 with a 20.58% profit. The largest loss was -1.65% in 2012 and the average return over the last 14 years has been 3.67%.

Is this now a perfect time to see strength in the USDRUB?

Major Trade Risks: Any stepping back from the Fed’s latest hawkish shift is a key risk to this trade outlook.

USDRUB

Learn more about HYCM

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD hovers below 1.19 on mixed market mood

EUR/USD is trading below 1.19 but above the daily low as markets are lifting their heads from Monday's concerns about slower growth following the disappointing ISM Manufacturing PMI. US Treasury yields are off their lows and covid headlines are eyed.

EUR/USD News

GBP/USD clings to 1.39 as UK covid cases fall

GBP/USD is trading around 1.39, marginally higher, as UK covid cases extend their drop toward 20,000. The broader market mood is also calmer despite growth worries. 

GBP/USD News

XAU/USD continues to target $1804 and $1800 support levels

Gold is holding the lower ground, heading closer towards $1800, as traders remain cautious and refrain from placing any fresh directional bets ahead of the all-important US NFP data due this Friday.

Gold News

Bitcoin and altcoins correct before another run-up

Bitcoin price has dropped 10% since its August 1 swing high at $42,599. Ethereum price follows BTC and has shed 9% as it bounces off the $2,460 support level. Ripple price came extremely close to retesting the range high at $0.785 but is now undergoing correction.

Read more

Delta Doom is set to storm America, the dollar could emerge as top dog

"America is coming back" – these words by US President Joe Biden have sounded like a victory lap for the country's success in depressing COVID-19 cases, hospitalizations, and especially deaths. The charts are indeed impressive:

Read more

Majors

Cryptocurrencies

Signatures