The Russian central bank is fighting a fire that’s out of control. They’ve intervened, they’ve nearly doubled rates overnight and yet the ruble is still collapsing.

It’s gone up 300 pips in the time I’ve written this post.

If you want to talk about the difference between central banks then here is the perfect case. Take the CBR vs SNB and you’ll see what happens when a central bank is the wrong side of their own currency. This could well be a BOE type moment for the CBR and also a reminder why the SNB are happy to sit pretty knowing they can print their way through any problems. The Russian central bank can’t and they (and Russia) are in getting in deep deep doodoo right now.

Someone has to blink or something’s going to break.

Another 80 pips has just been tacked on as I type 72.50 trades.

USD/RUB daily chart 16 12 2014

USD/RUB daily chart 16 12 2014

Now at 73.57 73.82