Sell USD/RUB, says Morgan Stanley, as it expects the Central Bank of Russia to deliver fewer rate cuts than the market expects in 2018, even though it forecasts a 25 bps cut this Friday. The bank recommends selling USD/RUB at the market price, for a target of 55.50, and a stop at 58.75. USD/RUB is last at 57.4590. "Despite the CBR being in the midst of an easing cycle, commentary from [Head of Central Bank Elvira] Nabiullina has remained cautious, and so easing will likely be gradual," says Morgan Stanley. "This should keep real rates and RUB supported."(olga.cotaga@wsj.com; @OlgaCotaga)
