USD/RUB plunges to 3-week lows near 64.30 post-CBR


  • USD/RUB loses further ground and tests 64.30.
  • CBR cut the repo rate by 25 bps to 7.5%.
  • The CBR now sees end-of-2019 CPI at 4.2%-4.7%.

The Russian Ruble keeps appreciating vs. the greenback this week and is now dragging USD/RUB to fresh 3-week lows in the 64.30 region.

USD/RUB weaker on CBR decision

Spot has accelerated the leg lower this week after the Russian central bank (CBR) cut its key rate by 25 bps to 7.50% at today’s monetary policy meeting, matching the broad consensus.

In addition, the central bank has revised lower its end-of-year inflation forecast to the 4.2%-4.7% range (from 4.7%-5.2%) after assessing that upside risks to inflation now appear somewhat mitigated.

Furthermore, the CBR said the annual raise in consumer prices keeps losing traction, while inflation expectations among households and business price expectations remain elevated.

The CBR also sees the likeliness of further easing (via rate cuts) at one of the next meetings if domestic developments follow the bank’s forecasts, paving the way to a neutral monetary stance until mid-2020.

From its medium-term forecasts also published today, the CBR now expects the economy to expand at 1.0%-1.5% this year and 1.8%-2.3% in 2020 (baseline scenario) and 1.0%-1.5% in 2019 and 2.0%-2.5% next year in case of higher oil prices.

USD/RUB levels to watch

At the moment the pair is retreating 0.36% at 64.32 and a breakdown of 64.12 (monthly low May 22) would aim for 63.66 (monthly low Apr.23) and finally 64.39 (monthly low Mar. 20). On the other hand, the next hurdle is located at 64.71 (55-day SMA) seconded by 64.96 (100-day SMA) and then 65.59 (monthly high Jun.3).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: risk-off taking over on trade war escalation

The American Dollar sold off Friday, following US President Trump´s anger discharge on Twitter. The pair soared to 1.1152, its highest for the week, to finally settle at around 1.1140.

EUR/USD News

GBP/USD: Johnson and Tusk engaged in the blame-game

The GBP/USD pair flirted with the 1.2300 figure late Friday, ending the week with substantial gains around 1.2280, backed by Brexit hopes and the dollar’s broad weakness.

GBP/USD News

USD/JPY: lower lows at sight on the run to safety

The USD/JPY pair sunk Friday, following US President Trump’s fury with China and Fed’s head Powell, as the market rushed into safety. US yield curve inverted again, fears of recession rule.

USD/JPY News

Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •