American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

USD/RUB forecast: here’s why the Russian ruble is soaring

by admin January 31, 2025
January 31, 2025
USD/RUB forecast: here’s why the Russian ruble is soaring

The Russian ruble is back. The USD/RUB exchange rate has retreated from last year’s high of 114.45 to the current 98.30, its lowest level since November 14. It has also formed a highly bearish chart pattern, pointing to more downside later this year. 

USD/RUB forecast as a double-top pattern

The daily chart shows that the USD/RUB exchange rate rose to a high of 114.48 in 2024 as the Russian economy remained on edge. 

It has now reversed some of those gains and dropped to a low of 98. The pair has formed a double-top chart pattern, pointing to a strong pullback. This pattern comprises two peaks and a neckline at 98.57. It has already dropped below the neckline and retested it, a continuation sign.

The pair’s neckline was at the 50% Fibonacci Retracement level. It has dropped below the 50-day and 100-day Exponential Moving Averages (EMA), which are about to form a bearish crossover.

The Relative Strength Index (RSI) and the MACD indicators have continued falling, a sign that the downtrend is gaining traction. 

Therefore, the path of the least resistance for the USD/RUB pair is bearish, with the next point to watch being the 61.8% retracement level at 94.65. More downside from that point will lead to further selloff to the psychological point at 90. Conversely, a move above the 1he 50-day moving average will invalidate the bearish view.

Why the Russian ruble is soaring

There are a few reasons why the Russian ruble has gained against the US dollar. First, it has become a popular carry trade currency as the divergence between the United States and Russia continues. 

The Federal Reserve has started to cut interest rates in a bid to supercharge the economy. It has slashed rates by 1% since last year, and officials expect to deliver two cuts later in 2025. 

On the other hand, the Central Bank of Russia has embraced a highly hawkish tone in the past few months as the economy has done well. It raised interest rates to 21% in December, and analysts expect it to continue in January. It moved them from 7.50% in 2022. 

The Russian central bank’s hikes have created a good carry trade opportunity and demand for the currency. A carry trade is a situation where investors borrow a low-interest-rate currency and then invests in high rate ones.

Elevated crude oil and natural gas prices have also supported the Russian ruble. Brent, the global benchmark, has risen to $76, while West Texas Intermediate (WTI) has increased to $74. Russia benefits from higher oil prices because it is the biggest foreign exchange earner. 

Natural gas prices have also jumped to the highest level in months amid elevated demand from European countries. All these factors have contributed to the ongoing Russian ruble surge this year.The Russian ruble has gained after Donald Trump’s win, which raised the odds that the United States will scale back tariffs on the country.

The post USD/RUB forecast: here’s why the Russian ruble is soaring appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Very bad news for Pi Network holders: will the Pi coin price crash?
next post
Crypto pros scoop Dogizen as Bitcoin, Litecoin gets back on track

Related Posts

​Tech 5: SEC Delays Spot Ethereum ETF Decision,...

May 14, 2024

AMD stock price forecast: Here’s why it could...

November 30, 2024

Estee Lauder stock price analysis: rebound can’t be...

May 16, 2025

Victory Sells Tahlo Lake Property in British Columbia

April 27, 2024

Here’s why the IONQ and Rigetti Computing stocks...

December 11, 2024

Canadian Critical Minerals Generates USD$246,000 in Revenue from...

July 11, 2024

DraftKings stock nears key price ahead of earnings

February 12, 2025

Applied Materials stock: Is AMAT a bargain ahead...

February 7, 2025

XPeng stock price forms a rare pattern, pointing...

April 12, 2025

Hims & Hers stock price target according to...

February 10, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved