USD/RUB keeps 67.00 post-CBR

Pablo Piovano FXStreet

The Russian currency keeps its bearish bias on Friday, lifting USD/RUB to daily highs near 67.20, although deflating a tad afterwards.

USD/RUB higher on steady CBR

The pair is extending its rally for the second week in a row today as declining crude oil prices keep weighing on RUB. The barrel of Brent crude is now hovering over $42.80/70, fresh 3-month lows.

Further news from Russia showed the CBR left unchanged its monetary policy stance today, with the benchmark rate at 10.50%, matching the broad consensus.

The central bank justified its decision after arguing that inflation figures and the incipient economic recovery remain in line with the bank’s forecasts, although the decline in inflation expectations has stalled.

The CBR now expects to reach its 4% inflation target at some point in late 2017, at the same time leaving the door open for further rate cuts in case of need.

USD/RUB levels to watch

At the moment the pair is advancing 0.61% at 67.01 facing the next resistance at 67.67 (high Jun.2) ahead of 68.75 (200-day sma) and then 69.63 (high Mar.24). On the downside, a break below 65.00 (55-day sma) would open the door to 64.47 (20-day sma) and then 62.75 (2016 low Jul.14).

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.

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