The Russian currency keeps the firm fashion vs. the buck on Friday, now dragging USD/RUB nearly 1% to the area near the 57.00 handle, or daily lows.
USD/RUB weaker on oil gains, USD selling
The pair met increasing selling pressure following the unabated sell off around the buck and the continuation of the rally in crude oil prices.
In fact, the barrel of Brent crude is gaining around 2% in the mid-$53.00s, always bolstered by heightened hopes of an extension of the OPEC/non-OPEC output cut deal either to end-2017 or Q1 2018. The next OPEC meeting is due on May 25 and traders expect the cartel to announce its decision on the matter.
Collaborating with the downside, the greenback – gauged by the US Dollar Index - stays entrenched into the negative territory following the ‘Russia-gate’ and chatter regarding Trump’s impeachment, coming down to test lows in levels last seen in early November 2016 in the vicinity of 97.00 the figure.
Adding to USD-selling, St. Louis Fed James Bullard (2019 voter, dovish) suggested on Friday that the Fed should retain option to implement QE in the future if needed.
USD/RUB levels to watch
At the moment the pair is losing 1.00% at 57.00 facing the next support at 56.87 (low May 19) followed by 56.08 (low May 15) and finally 55.67 (2017 low Apr.25). On the other hand, a break above 57.59 (high May 19) would expose 58.12 (high May 18) and finally 59.07 (high May 5).