Morgan Stanley recommend selling USD/RUB at...>

FOREX: Morgan Stanley recommend selling USD/RUB at RUB66.35, with a target of

RUB64.00 and a stop at RUB67.40.

- Morgan Stanley think that "RUB's resilience to sanctions is high while the

economy is solid. There was a brief period following the release of the revised

DASKAA bill, which would introduce sanctions on new Russian sovereign debt among

other areas, when RUB volatility picked up and the currency weakened. However,

the weakness was quickly reversed. One reason is that the Russian authorities

continue to take measures to insulate the economy against such risks. We expect

Russia to generate a 2.5% and 5.7% of GDP budget and current account surplus,

respectively in 2019. While RUB has been a strong performer already, we think

that there is scope for more gains. The main risk to the trade is a bigger

escalation in sanctions risk than the market expects."