Jameel Ahmad, Chief Market Analyst for FXTM said: “In line with expectations, the currencies that are impacted from declining commodity prices were the ones that really felt the pinch following the decision. In particular, the Russian ruble was flattened and has since weakened from $46.20 against the US dollar, to $48.84 this morning".
Análisis Técnico
T"he EU sanctions on Russia are already impacting the Russian economy, but it is being reported that these sanctions only cost the economy $40bn a year. On the other hand, it is being reported that declining Oil prices could cost the Russian economy another $100bn a year. When you combine these two factors alongside a strengthening US dollar, it is going to make the Central Bank of Russia’s (CBR) attempts to rebalance the ruble far more difficult.”
“…The other currencies that were impacted by the OPEC decision were the USDCAD, which extended by 120 pips, and the Norwegian Kroner, which has weakened from 6.8109 against the USD to 6.9538. With the markets already rushing in to price in further longer-term declines in the price of Oil, investors should really look at for how central banks react to the decision. We are probably going to see more policy makers come out and make dovish statements regarding the need for a weaker currency, in response to a decline in commodity prices - as the RBA already have done this week. Weaker commodity prices are going to continue having a short-term impact on inflation readings, which will make Mario Draghi’s job to prevent the Eurozone from slipping into deflation even harder.