On Friday, the major American indexes showed growth in the single dynamics. The Dow Jones rose by 0.07% (19933.81), S&P 500 added 0.13% (2263.79), the Nasdaq rose by 0.28% (5462.69). European indices closed in different directions. Germany's DAX sank slightly by 0.05% (11449.93), British FTSE 100 grew 0.06% (7068.17).
Today, major news is expected for Asian markets and will influence the decisions of currency traders.
At 02:50 MSK will be published minutes of the meeting of monetary policy of Japan.
At 07:00 MSK it is planned the speech of the Governor of the Bank of Japan Kuroda.
At 20:00 MSK will be known the total number of unemployed in France.
On Saturday, the whole Catholic world celebrated the most anticipated and favorite holiday of Christmas. Usually this day in all countries is not working, but as it is falls on the weekend this year, it was decided to make a day off on Monday. Thus, all exchanges of Catholic countries are closed today. Tirelessly working the international currency market FOREX and the Russian stock exchanges, as well as Asia.
The head Bank of Japan Kuroda On his speech this morning said that the economy is no longer in deflation, and now the conditions are right for increasing wages. Maybe soon we can see a correction in USD/JPY after rising hurricane rally.
On Friday, the domestic indices closed in the single dynamics in the negative zone. The MICEX index dipped by 0.07 % (2173,18), the RTS index declined 0.70% (1117,92). The decrease is mostly due to pre-holiday Friday. Volatility decreased on western exchanges and volumes too, traders reduced risk and took profits before the long weekend. The Russian market, showing a smooth correction at low volumes which become smaller by 26.3 billion comparative to the previous session.
Today in the Russian market the attention of investors will be directed on the course of the extraordinary meeting of shareholders "Aeroflot". On the agenda is the deal of purchase of twenty two Boeing 787. Also today is the closing of the register of shareholders of preferred shares of VTB Bank.
It is likely that in the absence of external background the Russian stock markets the correction will continue that began on Friday. Possible target of lowering for the RTS index is in the range 1100 – 1090. The MICEX index can be adjusted to the support level of 2150. It is expected that trading volumes will be below average, so it is also possible sharp movements in the thin illiquid market.
The ruble got stronger last week, at the end of which its value against the dollar amounted to 61,05 of the ruble. It was also the "pierce" of annual minimum level 60,70. Now the dollar is holding on by exporters of minerals, which will soon have to pay the extraction tax.
Sincerely, Global FX chief analyst Sergey Melnikov.