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).
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