CEX.IO company blog | RESULTS OF THE WEEK (August 3-9): Markets slightly corrected after a sharp rise

During the week, financial markets continued to stay within established ranges.Brent crude oilmanaged to cross the level of $45/barrel, howeverthen black gold quotes rebounded and at the end of the week were trading at $44.66. We predict a technical rebound in oil prices to $43. Gold managed to consolidate above $2,000 per ounce during the week. Demand for the precious metal continues to be supported by the unstable market situation due to the coronavirus pandemic and the possibility of explosive growth in inflation due to stimulus measures by global central banks. We maintain a positive outlook for gold and believe that in the medium term this asset could reach $2,100 per troy ounce.

On the foreign exchange market, major currencies continuestay sideways. Apparently, August 2020 will be quite calm; we predict the emergence of volatility only in the fall. The USD index ended the week at 93.39, unchanged from the opening price at the beginning of the week. Against the backdrop of stable oil, the Russian ruble strengthened slightly to 73.71. The next week will most likely also depend on black gold quotes; a local decrease in Brent will immediately affect ruble quotes. We predict that the USD/RUB exchange rate will remain in the range of 72-75.

The upward trend has changed in the cryptocurrency marketminor correction. Bitcoin fell to $11,596, while Ethereum ended the week trading at $388. We are taking a wait-and-see approach to cryptocurrencies, since there are no serious growth drivers in the digital asset market.

Kazakhstan:

Over the week, the Kazakh tenge moved slightlystrengthen, the USD/KZT pair rate dropped to 419 tenge, having started the week at the level of 421. The strengthening of KZT is more likely due to external factors than internal ones. The main positive external factor is the global oil market, which stabilized and consolidated under a local maximum of $45 over the week. However, we note that internal negativity in the Kazakh economy due to repeated quarantine may soon be reflected in the tenge exchange rate, so we maintain a negative outlook and believe that the immediate target of the Kazakh currency is likely to be 430 per US dollar.

Dynamics of major assets over the past week (August 3-9):

Brent crude oil rose from 43.53 to 44.66 (+ 2.6%)

Gold rose from 1985.20 to 2,036.15 (+ 2.6%)

The USD/RUB pair fell from 74.41 to 73.71 (-0.94%)

The USD/KZT pair fell from 421.78 to 419.78 (-0.47%)

Bitcoin fell from 11 802 to 11 596 (-1.75%)