Currency Rebounds

Day 706, 14:04 • Published in USA USA • by dreaeuh

You can tell the variations in supply and demand in the difference between the USD and the PLN. They both have a base rate of 0.025GOLD. Equilibrium would be 40 units of currency each.

The USD has high demand and high volume of trading while the PLN has low demand and low volume of trading.

This shows because the PLN averages about 40.10PLN per GOLD while the USD is around 40.2 to 40.3USD per GOLD.

Yesterday, when the eUS Congressional Budget Office sold a batch of RUB at a rate of 0.034, down from 0.035, the equilibrium point changes from 28.57 to 29.41RUB per GOLD. Any price below 29.41 presented a chance at arbitrage, because you could buy 29.41RUB for 1GOLD and immediately repurchase GOLD for less what you just bought it for.

Currently, the RUB is riding out a spell of inflated prices, at about 29.09RUB per GOLD due to a large amount of supply (with 9,000 extra RUB in the market) relatively low demand.

It isn't a good day to convert RUB back into GOLD, not until the price is back around 28.7 or 28.8.