USD/RUB sharply lower, breaks below 59.00

The Russian currency is trading on a very firm fashion at the beginning of the week, taking relegating USD/RUB to the lower end of the range in sub-59.00 levels.

USD/RUB weaker on oil recovery

RUB is deriving extra support from an extension of the recovery in crude oil prices. In fact, the barrel of European reference Brent crude has now surrendered part of its daily advance to the $46.40 region and is hovering over $45.80 at the time of writing.

In the meantime, spot is down for the third session in a row today, extending the decline after being rejected from multi-week tops in the mid-60.00s seen last week and amidst a persistent selling bias around the greenback.

The US Dollar Index could not sustain earlier gains above the critical 97.00 handle, while poor prints from US durable goods orders and the Chicago Fed national activity index have also collaborated with the downbeat sentiment.

Looking ahead, FX reserves held by the CBR are only due later in the week, while US Q1 GDP figures, CPI and the speech by Chief J.Yellen will be the salient points in the US calendar.

USD/RUB levels to watch

At the moment the pair is losing 0.64%% at 59.01 facing the immediate support at 58.87 (low Jun.26) seconded by 57.68 (20-day sma) and finally 57.54 (100-day sma). On the upside, a surpass of 60.06 (200-day sma) would aim for 60.41 (high Jun.21) and then 60.61 (high Jan.23).