USD/RUB steady near 59.40 on CBRF

The Russian currency keeps the firm tone at the end of the week, with USD/RUB now navigating the mid-59.00s following the CBR interest rate decision.

USD/RUB bid after CBR, looks to Brent, NFP

Spot remains in the lower end of the recent range after the Bank of Russia (CBRF) left the key rate unchanged at 10.00% at its meeting today.

The CBRF said inflation performance has been in line with forecasts, while inflation expectations remains on the downside. The bank also said the slower growth in consumer prices is partially due on temporary factors, while it sees the CPI reaching the 4% target in late 2017.

The CBRF also said the economy is recovering at a faster pace than initially estimated and stressed that the likeliness of rate cuts during this year has diminished.

RUB strength has been also propped up by a recovery in the price of the Brent crude, which is trading close to the $57.00 mark per barrel, while speculative positioning keeps showing net longs at record levels.

USD/RUB levels to watch

At the moment the pair is losing 0.02% at 59.40 with the immediate support at 58.84 (2017 low Feb.2) ahead of 58.57 (low Jul.29 2015) and then 56.20 (low Jul.10 2015). On the upside, a surpass of 59.74 (20-day sma) would aim for 60.06 (high Feb.1) and finally 60.56 (high Jan.26).