5 Mar 2015
RUB upside seems limited – Rabobank
FXStreet (Edinburgh) - Strategist Piotr Matys at Rabobank believes the upside in the RUB faces strong headwinds in the near and medium terms.
Key Quotes
“The ruble outperformed its EMEA peers in February, rallying by almost 13% against the USD and more than 12% vs. the EUR at one stage”.
“That said, scope for further recovery looks limited. As reflected in S&P’s and Moody’s decisions to downgrade Russia’s rating to junk, the RUB still faces major headwinds this year including prevailing uncertainty about eastern Ukraine and the risk of another leg lower in oil prices in a global environment dominated by weak demand and oversupply”.
“It might be still too early to expect sustainable RUB recovery in our view”.
Key Quotes
“The ruble outperformed its EMEA peers in February, rallying by almost 13% against the USD and more than 12% vs. the EUR at one stage”.
“That said, scope for further recovery looks limited. As reflected in S&P’s and Moody’s decisions to downgrade Russia’s rating to junk, the RUB still faces major headwinds this year including prevailing uncertainty about eastern Ukraine and the risk of another leg lower in oil prices in a global environment dominated by weak demand and oversupply”.
“It might be still too early to expect sustainable RUB recovery in our view”.