USD/RUB advances to highs near 58.00
The Russian currency is sharply lower vs. the greenback on Thursday, lifting USD/RUB to fresh daily highs in the 58.00 neighbourhood.
USD/RUB up on Brent losses, USD advance
RUB quickly dropped to fresh 4-week lows vs. the buck in the second half of the week, as the rout in crude oil prices remains unabated. In fact, the barrel of Brent crude remains on the defensive and trading around the $47.00 mark, closer to YTD lows in the $46.60 region seen in early May.
Furthermore, the rally in the buck post-FOMC is adding extra wings to the pair’s up move to multi-day peaks, approaching the key barrier at 58.00 the figure.
In the data space, the NY Empire State index and the Philly Fed index came in the strong side, supporting further the upside momentum in the buck.
In Russia, the FX reserves held by the CBR rose to $408.3 billion during last week from $406.9 billion. Looking ahead, the CBR is expected to cut rates at tomorrow’s meeting, while GDP figures and industrial production results should keep RUB busy as well.
USD/RUB levels to watch
At the moment the pair is gaining 0.67% at 57.81 facing the next hurdle at 58.12 (high May 18) seconded by 58.58 (high May 9) and finally 59.07 (high May 5). On the downside, a break below 56.77 (55-day sma) would aim for 56.02 (low Jun.1) and then 55.16 (2017 low May 31).
