USD/RUB up and down around 57.20 post-CBR decision
|- The pair stays sidelined above the 57.00 handle post-CBR.
- The Russian central bank (CBR) cut its key rate by 25 bp to 7.25%.
- UK-Russia geopolitical effervescence still in centre stage.
The Russian currency is alternating gains with losses vs. its American counterpart at the end of the week, with USD/RUB hovering just above 57.00 the figure.
USD/RUB unchanged on CBR desicion
RUB remained apathetic after the Russian central bank (CBR) cut its key rate by 25 bp to 7.25% per anum, matching market consensus.
The CBR acknowledged that inflation figures remain low, while inflation expectations are also diminishing progressively. In addition, the central bank expects inflation to ‘gradually return to the target in the second half of the year’ in tandem with a recovery in the domestic demand. Inflation, therefore, is seen at 3-4% in 2018 and closer to the 4% target next year.
The CBR does not rule out further easing of the monetary conditions in order to help domestic demand and lift inflation to the bank’s target.
Regarding the economic activity, the CBR noted the economic growth resumed this year following the poor performance during 2017, and now sees the economy expanding by 1.5%-2% in the 2018-2020 period. The central bank also increased the price for crude oil in its baseline scenario.
In the meantime, spot is testing the 10-day sma in the 57.25 area following yesterday’s strong advance, although the current broad-based weakness around the buck is poised to keep it under pressure.
USD/RUB levels to watch
At the moment the pair is down 0.08% at 57.19 and a break below 56.87 (21-day sma) would expose 56.81 (55-day sma) and then 56.74 (low Mar.22). On the upside, the next hurdle is located at 58.02 (high Mar.19) seconded by 58.16 (200-day sma) and finally 58.75 (2018 high Feb.9).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.