USD/RUB weaker post-CBR decision, below 57.00

Pablo Piovano FXStreet

The Russian Ruble is picking up pace following the CBR meeting, with USD/RUB now testing daily lows in the 56.75/70 band.

USD/RUB tumbles to lows on CBR

The pair dropped from highs beyond the 57.00 handle after the Russian central bank (CBR) cut the key rate by 50 bp to 9.25% at today’s meeting, more than the forecasted 25 bp cut.

The CBR noted that domestic inflation is moving closer to the 4% target, while inflation expectations are declining and the economic activity continues to recover. The central bank now expects to clinch the inflation target before year-end.

RUB reverted the initial weakness so far today, following the current rebound in crude oil prices, with the barrel of Brent crude regaining the $52.00 mark and above. The pair, in the meantime, keeps navigating the area of 2-week peaks in the upper-56.00s, on its way to close its second consecutive week with gains.

USD/RUB levels to watch

At the moment the pair is losing 0.1032 at 56.78 facing the next support at at 56.72 (low Apr.27) seconded by 56.49 (20-day sma) and finally 56.15 (low Apr.26). On the upside, a breakout of 57.36 (55-day sma) would aim for 57.55 (high Apr.10) and then 58.19 (high Mar.22).

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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