Central Banks around the world are cutting rates left and right and Bank of Russia is no different. Despite Russia trying to diversify their dependency from oil, Russia is still the second biggest oil exporter in the world. And oil is dependent on the pulse of the world economy. So because the world economy is slowing, oil prices are depressed and Russia is sweating bullets and cutting interest rates.
The Bank of Russia made its third consecutive interest-rate cut and said more monetary easing is possible at an upcoming meeting as inflation dropped closer to a 4% target.
Inflation is decelerating faster than expected this year, aided by an early harvest and weak consumer demand. The central bank cut its year-end inflation outlook to 4%-4.5% from a June forecast of 4.2%-4.7%.
Economy Minister Maxim Oreshkin has called for more easing to stimulate growth, which slipped to 0.7% in the first half. He has warned inflation could drop as low as 3% at the beginning of 2020. The central bank on Friday cut its growth forecasts for 2019-2021.
So where is the Ruble headed next, lets go to the charts?
Monthly Chart (Curve Time Frame) – monthly supply is at 77.000 and monthly demand is at 50.000.
Weekly Chart (Trend Time Frame) – the trend is sideways with with short term momentum to the upside.
Daily Chart (Entry Time Frame) – the chart suggests to go long if price drops a bit lower to the daily demand at 65.000 with a target at 69.000.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.