USD/RUB gains traction above the 97.00 area, investors await US economic data


Share:
  • USD/RUB extends its upside above the 97.00 mark.
  • The Russian Ruble extends its downside; Russia's budget is under pressure as a result of the Ukraine conflict.
  • A mixed US employment data and upbeat manufacturing PMI decreases Fed tightening expectations.
  • Investors await the US Factory Orders, the US ISM Services PMI.

USD/RUB gains momentum and trades in positive territory for the third consecutive week during the early European session on Monday. The pair currently trades near 97.23, up 0.37% for the day.

The economic data released last week revealed that Russia's S&P Global Manufacturing PMI for August came in at 52.7 compared to the market estimate of 52.1. The figure rose to its highest level in three months. The Unemployment Rate for July declined to a new all-time low of 3.0% from 3.1% in June and the 3.2% market expectation.

The Russian Ruble has been falling sharply in recent months and Russia's budget is under pressure as a result of the Ukraine conflict. The Bank of Russia increased the interest rate by 350 basis points (bps) to reach 12% on August 15 to stop the depreciation of the Ruble. Apart from this, Russia has increased its military spending objective for 2023 to more than $100 billion, representing a third of all state expenditure, as the escalating costs of the Ukraine conflict place an increasing strain on Moscow's finances.

Nonetheless, Russian Finance Minister Anton Siluanov forecasts that the Russian economy will expand by at least 2.5% in 2023, with inflation hovering around 6%. He also said that he will collaborate with the Central Bank to take all necessary steps to bring down inflation to a sustainable level.

On the US Dollar docket, Market players speculate on a less aggressive Federal Reserve (Fed) stance following the mixed economic data results last week. The possibility of holding an interest rate at the September meeting remains at 93%, according to the CME FedWatch Tool. Meanwhile, the odds of hiking rates at the November meeting are about 38%. That said, Fed Chairman Jerome Powell stated at the Jackson Hole Symposium that a potential additional rate hike would be depending on incoming data.

Looking ahead, market participants will focus on the US Factory Orders due later on Tuesday and then shift their focus to the US ISM Services PMI data on Wednesday. These figures could give a clear direction for USD/RUB. Also, the headline surrounding Russia’s war in Ukraine remains in focus.

 

USD/RUB

Overview
Today last price 60.95
Today Daily Change -35.9250
Today Daily Change % -37.08
Today daily open 96.875
 
Trends
Daily SMA20 95.9618
Daily SMA50 92.8635
Daily SMA100 86.9531
Daily SMA200 79.765
 
Levels
Previous Daily High 97.0765
Previous Daily Low 96.158
Previous Weekly High 97.057
Previous Weekly Low 93.3715
Previous Monthly High 102.38
Previous Monthly Low 90.8215
Daily Fibonacci 38.2% 96.7256
Daily Fibonacci 61.8% 96.5089
Daily Pivot Point S1 96.3298
Daily Pivot Point S2 95.7847
Daily Pivot Point S3 95.4113
Daily Pivot Point R1 97.2483
Daily Pivot Point R2 97.6217
Daily Pivot Point R3 98.1668

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD holds steady above 1.0800, as German/ US inflation data loom

EUR/USD holds steady above 1.0800, as German/ US inflation data loom

EUR/USD is trading sideways above 1.0800 in the European morning on Thursday. The pair stays underpinned by the renewed US Dollar weakness. But further upside remains elusive ahead of the key inflation data from Germany and the US. 

EUR/USD News

USD/JPY remains heavy below 150.00 on BoJ Takata's hawkish signals

USD/JPY remains heavy below 150.00 on BoJ Takata's hawkish signals

USD/JPY is consolidating steep losses below 150.00, having tumbled on hawkish comments from BoJ policymaker Takata. Takata hinted at a likely policy pivot, sending the Japanese Yen higher across the board. US PCE inflation data is next on tap. 

USD/JPY News

Gold could regain $2,050 on soft US Core PCE inflation data

Gold could regain $2,050 on soft US Core PCE inflation data

Gold price is trading in the green zone for the second straight day early Thursday, stretching toward the two-week high of $2,041. A broad USD selling amid an improvement in risk sentiment is underpinning the Gold price ahead of the all-important PCE data due later in the day.

Gold News

Bitcoin ETF success could see Ethereum alternative soon, says Jim Cramer

Bitcoin ETF success could see Ethereum alternative soon, says Jim Cramer

Following the landmark approval of multiple spot Bitcoin exchange-traded funds (ETFs) on January 10, this has been the abounding theme in the cryptocurrency market. 

Read more

The Fed's favoured measure of inflation on tap “the PCE deflator“

The Fed's favoured measure of inflation on tap “the PCE deflator“

Unless you were out caving, like Lando Norris was and missed out on when the Lewis Hamilton to Ferrari news broke, you likely heard that Equities hit fresh record highs last week in several markets from Europe to Japan.

Read more

Forex MAJORS

Cryptocurrencies

Signatures