Russia RU Central Bank Key Rate October 22 2021
What does the data mean to the market?
The Central Bank of Russia's decision on where to set the benchmark interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the RUB, while a lower than expected rate is negative/bearish.
Historic deviations and their outcome
April 23 2021 A 0.25 change from the forecast caused 172 pips spike in the first minute. Nice.
Check out the price action here:
I will use forecasts of:
Central Bank Key Rate 7.0
Today's trade plan
Theres varying estimates on forcast but the mostly weighted to a change to tha rate today of 7.00% a hike from the previous 6.75%
I'll take a buy on a +0.5 deviation from forcast so if they hike more than expected I will buy the RUB (Selling the USDRUB)
I will take a sell on a -0.25 deviation from forcast so if they do not change the rate and it remains at 6.75% i will sell the RUB (Buying the USDRUB)
Hope this helps but please do your own analysis!!
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