USD/RUB testing session tops near 57.40, US data on sight
- RUB depreciates to the 57.40 region vs. the greenback.
- Geopolitics expected to weigh on RUB following the poisoning scandal.
- US ISM Manufacturing expected to drive sentiment later in the session.
The Russian Ruble stays on the defensive at the beginning of the week, lifting USD/RUB to fresh tops in the 57.40 region.
USD/RUB looks to US data
After two consecutive sessions with losses, the pair is now attempting a recovery to the 57.40 region, coming up from last week’s lows in the 56.80 region, coincident at the same time with the 55-day sma.
In the meantime, spot remains sidelined between 56.80 and the 58.00 area for the time being, always against the backdrop of unabated geopolitical concerns involving Russia, UK, US and some other European countries particularly after the poisoning scandal in the UK.
RUB has given away part of its recent gains after the barrel of the European reference Brent crude managed to retake the boundaries of the psychological $70.00 milestone, although resistance seems to have emerged in the $57.00 neighbourthood.
On the positioning front, speculators scaled back their RUB net longs to the lowest level in the last three weeks during the week ended on March 27, as shown by the latest CFTC report.
USD/RUB levels to watch
At the moment the pair is up 0.45% at 57.40 and a break above 57.88 (high Mar.28) would open the door to 58.02 (high Mar.19) and finally 58.16 (200-day sma). On the flip side, the next support lines up at 57.03 (low Mar.30) would expose 56.86 (55-day sma) and then 56.74 (low Mar.22).
