25.12.2018: What currency is to buy: euro or dollar

The crash of the US stock market triggered
a wave of purchases of safe haven currencies as well as the intense selling of the commodity
assets. Oil quotes dropped to their 16-months lows. The Brent benchmark is trading below $50.50. The forecast is also unpromising, the bearish
trend may remain for several more months. Traders are selling oil amid fears that the
American economy is going to weaken and lead to the lower oil demand as the US is still
a largest oil consumer. The sentiment is so pessimistic that investors
proceed with sell trades in spite of new OPEC+ agreements to reduce oil production so that
the balance of demand and offer in the oil market could be stabilized. However, some experts believe that the change
in the monetary policy of the European Central Bank is another reason of the oil market’s
decay. After the ECB acknowledged the need to shift
from the quantitative easing program, investors switched their focus to European currencies
and started selling off of the greenback and oil. Nevertheless, the European markets are closed
at the moment due to Christmas celebration. In case this theory is correct, we will witness
a significant rise of the euro/dollar pair on Thursday once the trading session is on. The similar scenario is expected regarding
the euro/ruble pair. The pair should skyrocket at least due to
the completed tax period in the Russian Federation. So far, the trading instrument is around 78.50. So, that is it for today. We wish you not to give in to panic, to study
news background and take a right trading decision.

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