EUR/RUB: Overshooting versus fundamentals – Danske Bank

Russia can manage better than other countries the corona crisis as maintains the inflation low, per Danske Bank. EUR/RUB is trading at 83.4285.

Key quotes

“In Russia, the economy can weather the storm, as inflation is low, and even after the 20-30% move in the rouble we are unlikely to see double-digit CPI.” 

“We also see EUR/RUB overshooting versus fundamentals, but we have lifted our 12M EUR/RUB forecast to 75.00 (from 60). Notably, it is likely to take a while before we see an end to the ongoing oil-price war.”