USD/RUB drops to lows near 57.00 post-CBR

Pablo Piovano FXStreet

The Russian currency is trading on a firmer note vs. the buck at the end of the week, dragging USD/RUB to fresh lows near the 57.00 handle.

USD/RUB weaker on Brent gains

RUB gathered extra traction on Friday following a better tone in crude oil prices, which are recovering some ground after Thursday’s drop. The barrel of Brent crude is advancing for the first time since last Friday, testing the $50.80 area after bottoming out near $49.70 on Wednesday.

The pair bounced off lows after the Russian central bank (CBR) unexpectedly cut its key rate by 25bp to 9.75% at its meeting earlier today.

The CBR noted the decline in domestic consumer prices has overshot the bank’s forecasts while inflation expectations stay on the downside. In addition, the CBR noted the economy keeps recovering faster than estimated and it now expects the inflation to reach the 4% target at some point in late 2017.

At the same time, the CBR left the door open for further rate cuts in Q2 and/or Q3.

USD/RUB levels to watch

At the moment the pair is losing 0.33% at 57.24 and a break below 57.00 (low Mar.21) would aim for 56.57 (2017 low Feb.15) and then 56.20 (low Jul.10 2015). On the other hand, the next hurdle aligns at 58.18 (20-day sma) followed by 58.19 (high Mar.22) and finally 58.79 (55-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.