Contrary to popular belief, the cold war did not end in the late 80’s with the demise of the former soviet republic; it simply shifted gears, changed outfits and reared its head once more in an entirely different arena – finances.
To say that relations between the two superpowers have remained tense would be a drastic understatement, much like saying that New Zealand has a lot of sheep and Qatar a lot of oil, but while diplomacy remains difficult, trading and finances keep the connection viable and powerful, because as we all know, money makes the world go around.
Trading binary options for the RUB/USD pairing is all about the status quo between two financial superpowers staying what it currently is, if conditions in which financial viability trumps political emotion prevail, the market between the nations, and the pairing is likely to remain rather calm, where if tensions escalate, causing a disruption in trading the pairing is likely to see great volatility as reaction.
The changes in the Russian economy only started manifesting themselves about a decade ago, when vast investment began in various petro-chemicals and industries around those commodities. Such investment allowed development of those industries, which in turn increased profitability by a substantial amount.
The growth in crude oil was especially obvious, and as of 2011, Russia has become the #1 producer of oil in the world, exceeding all Arab nations and any other players within the field.
With the growth of its oil production Russia has found itself with the ability to lead the world economy in at least one area, and it would appear that the current regime aims to put that new found ability to good use, the ability to control to a certain extent the prices of oil across the globe are an incredibly important tool, with importance to every nation on the planet, but even more so to highly industrialized states, which, as you may know, the US is by far the greatest.
While the US may not import Russian oil to the extent that other countries do, it relies on the ability to maintain desirable oil prices to better suit its production quotas, and also to maintain the relative strength of the dollar across the world.
But as we mentioned previously, political tension between Russia and the US may cause issues between the nations, and those tensions will almost always impact the direction which the USD/RUB pairing takes.
We have mentioned this elsewhere on the site, but if there’s one thing which you can probably rely on it is the fact that volatility can be of great use to the savvy binary options trader, and trading in USD/RUB binary options is no different – there is much to be gained from market movements if you are able to read, react and predict correctly.
As far as the US side is concerned, make sure to track the value of the dollar vs. other major currencies, as well as any major industry related reports that can impact US manufacturing and export, all of which connect directly to the value of the dollar.
On the Russian side of things you would be best served by tracking anything to do with oil prices and oil manufacturing within Russia and other major suppliers of oil, as any major changes in that market will impact the relative strength of the Russian currency.
Keeping track of both sides will help you avoid a cold war with your bank manager and successfully trade USD/RUB binary options without any global tension.