ECB Rates Left Unchanged

The Russian Ruble fell to a new all-time low, reaching 85.9230 versus the US dollar as oil prices continue to plunge. According to the latest inventory figures from the American Petroleum Institute and Energy Information Administration, reports show more inventories piling up, potentially leading to a further price drop in for Russia’s leading export commodity despite a massive rally to the upside after the latest EIA figure showing 3.979 million barrels added to inventories for the week ending January 15^th. Aside from the oil glut which is crushing prices, the Ruble’s spectacular fall is also pressured by the economic links between Russia and China with the latter economy quite vulnerable. The Central Bank of Russia is expected to release its monetary policy decision on January 29^th. Central Bank officials have stated so far, that the CBR has no plans to step in, but if the declines persist, they will intervene.

Initial US jobless claims for the week ending January 16^th saw the number of individuals applying for unemployment benefits rise to 293,000, a 6-month high. Americans filing unemployment for the first time, climbed by 10,000 from the previous week’s revision higher to 283,000. The 4-week moving average also rose, climbing to 285,000 from previous week’s revised 278,500. The Department of Labor commented that while claims have risen during the past weeks, levels are still below the healthy labor threshold of 300,000 for the 46^th consecutive week. With the dollar gaining in strength, demand for exports is slowing down, widely impacting the manufacturing sector. As the global economy stalls and energy prices continue falling, the energy, mining and manufacturing sectors continue to cut costs with layoffs. The Labor Department reassured that despite the dismissals happening in recent weeks, the labor market remains robust.