- The pair trades almost unchanged near 63.00 on Friday.
- USD/RUB navigates in the lower end of the recent range.
- The CBR left its key rate unchanged at 7.25%, matching consensus.
The Russian currency is alternating gains with losses vs. its American peer at the end of the week, motivating USD/RUB to navigate within a narrow range around the 63.00 milestone.
USD/RUB apathetic on steady CBR
Spot keeps the positive ground so far on Friday, remaining largely sidelined after the Russian central bank (CBR) left its key rate unchanged at 7.25% at today’s meeting, broadly in line with market expectations.
The CBR kept the monetary status quo intact today, adding that it now sees inflation returning to the 3.5%-4.0% area by year-end, a temporary overshooting of the bank’s 4% target during 2019 in response to ‘the planned increase of the value added tax’. The central bank thus expects consumer prices to return to the 4% area early in 2020.
Furthermore, and regarding the GDP, the CBR noted the recent World Cup contributed with 0.1-0.2 pts to the GDP figures and now sees the domestic economy expanding at an annualized 1.5%-2.0% this year.
USD/RUB levels to watch
At the moment the pair is up 0.11% at 63.02 and a break above 63.78 (high Jul.19) would aim for 64.18 (high Jun.18) and finally 65.01 (2018 high Apr.11). On the other hand, the next support aligns at 62.86 (21-day sma) seconded by 62.67 (low Jul.24) and then 61.65 (low Jul.11).
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