4 factors driving the dollar/ruble higher

June 1, 2015 03:06 PM

The month of June is officially underway and with it comes the official start of summer (in the Northern Hemisphere – apologies to my Australian friends!).

When it comes to the forex market, June has historically been a slower month, with EUR/USD limited to just a 200 pip top-to-bottom range last June, and many traders fear that these slow trading conditions will repeat this year. Whatever this month brings, the action-packed economic calendar in the G10 should keep traders pinned to their seats for this week at least.

The EM economic calendar is less eventful, though there still are a couple of key releases for traders to keep an eye on including interest rate decisions in Mexico (expected to remain on hold at 3.0%), India (expected to cut 25bps cut), and Brazil (expected to hike 50bps), as well as CPI data out of Turkey and Russia.

Speaking of Russia, the ruble has fallen to a 6-week low against the U.S. dollar today. The current drop in ruble (rally in USD/RUB) has been driven by four main factors.

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About the Author

Senior Technical Analyst for FaradayResearch. Matt has actively traded various financial instruments including stocks, options, and forex since 2005. Each day, he creates research reports focusing on technical analysis of the forex, equity, and commodity markets. In his research, he utilizes candlestick patterns, classic technical indicators, and Fibonacci analysis to predict market moves. Weller is a Chartered Market Technician (CMT) and a member of the Market Technicians Association.