Russian Ruble - Higher Inflation data to trigger RUBLE Buying

Fundamentals

Today's Russian inflation data could increase market bets of an interest rate hike by the Russian central bank in August.

Against low-interest-rate yielding currencies like the U.S Dollar and Euro, we could see a stronger Ruble as long as the risk of U.S sanctions on Russia does not persist.

Key Points:

Russia’s inflation currently stands at 5.50%.
This overshoots the central bank's inflation target of 4.00%
Markets betting on a rate hike by the Russian Central Bank August from 5.00% to 6.00%
Russian 10 Year Bond Yield sits at 7.20%.
Higher Inflation data could push up bond yields are cause the currency to strengthen.

What To Watch

Russian Employment Data & Unemployment Rate
Oil Prices
Inflation Rate

Trade Idea’s

Higher Inflation - Buy RUB

Technicals

RUB at major support levels against EUR @ 88.00
RUB at major support levels against USD @ 72.00

ATR Volatility

USD/RUB 5.64%

EUR/RUB 5.17%