USD/RUB within range above 63.00 post-CBR
- USD/RUB stays consolidative above the 63.00 handle.
- The CBR cut the key rate by 25 bps to 7.25% today.
- The CBR sees inflation back to 4% in early 2020.
Price action around the Russian Ruble remains steady so far today, with USD/RUB navigating the area above the key 63.00 support for the time being.
USD/RUB unchanged on CBR
The pair is extending the correction lower after being rejected from weekly highs in the 63.50 region (Wednesday), although the down move has been so far contained by the 10-day SMA near 63.00.
RUB stayed apathetic after the Russian central bank (CBR) cut its key rate to 7.25% (from 7.50%) at its meeting today, matching the broad based consensus.
The CBR acknowledged that domestic economic activity is running below the bank’s projections, while inflation keeps losing ground despite still high inflation expectations. On the latter, the central bank now sees consumer prices converging to the 4% target at some point early next year.
The central bank deems likely further interest rate cuts in the next months and expects to enter into the neutral policy during the first half of 2020.
USD/RUB levels to watch
At the moment the pair is receding 0.03% at 63.17 and a breach of 62.56 (monthly low Jul.15) would open the door for 62.49 (2019 low Jun.25) and finally 61.63 (monthly low Jul.11 2018). On the upside, the next barrier emerges at 63.51 (high Jul.24) seconded by 63.81 (55-day SMA) and then 63.99 (monthly high Jul.8).