The Russian currency is recovering part of the ground lost to the greenback at the beginning of the week, now dragging USD/RUB to the area of daily lows near 56.90.
USD/RUB gains capped around 57.00
RUB is deriving support following the recent recovery in crude oil prices, although the barrel of European reference Brent crude is today alternating gains with losses in the low-$48.00s.
Crude oil prices failed to gather extra pace after the OPEC’s monthly report now sees the oil demand increasing in the second half of the current year.
In the meantime, RUB should remain under pressure in light of the CBR monetary policy meeting due on Friday, with consensus expecting a rate cut to 9.00%. It is worth recalling that Governor E.Nabiullina recently said that the central bank could assess lowering its key rate at the meeting.
USD/RUB levels to watch
At the moment the pair is losing 0.21% at 56.90 facing the next support at 56.73 (55-day sma) seconded by 56.02 (low Jun.1) and finally 55.16 (2017 low May 31). On the flip side, a surpass of 57.33 (high May 29) would aim for 57.61 (100-day sma) and then 58.12 (high May 18).