03 March 2011

From ING Research : Crude, RUB and ECB lift EUR/USD

  •  "borrowed' the accompanying screen shot from ING Daily FX Strategy report.
  • Interesting to learn (or reminded) that : Higher oil = stronger RUB (move out of Asian reval positions) = Russian central bank buy USD/RUB to slow appreciation = buy EUR/USD with 40% of the intervention USD (reserves diversification).
  • So, higher Oil = higher EUR/USD.

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