USD/RUB refreshes weekly low around 59.00 even as G7 eyes caps on Russian oil prices

USD/RUB remains pressured around intraday low, down for the second consecutive day.
IEA’s Birol hopes G7 plan to impose restrictions on Russian oil prices gets buy-in from several countries.
Russia’s oil-for-ruble scheme defends RUB bulls despite the US dollar’s broad strength.

Anil Panchal FXStreet

USD/RUB sellers attack 59.00 threshold during the second daily fall amid early Tuesday morning in Europe.

The Russian ruble (RUB) pair part ways from portraying the broad US dollar strength amid Russia’s strategic move on oil prices. However, global concerns surrounding the caps to restrict energy quotes from Moscow and risk-aversion woes appear to challenge the pair sellers of late.

Recently, International Energy Agency (IEA) Chief Fatih Birol said, per Reuters, “Hopes the G7 plan to impose price caps on Russian oil gets "buy-in" from several countries.” The diplomat also added that any price caps on Russian oil should include refined products.

Elsewhere, the record US inflation expectations, per the NY Fed’s survey of one-year-ahead consumer inflation expectations join fears of China’s nationwide covid lockdown, after fresh activity restrictions on Henan Province’s Wugang, appear to weigh on the market sentiment.

The risk-off mood underpins the US dollar’s safe-haven demand. That said, the US Dollar Index (DXY) refreshed its 20-year high earlier in Asia before retreating from 108.50.

It’s worth noting, however, that the cautious mood ahead of Wednesday’s US Consumer Price Index for June, expected 8.8% versus 8.6% prior, also challenge USD/RUB prices.

In addition to the US inflation numbers, the global rush towards more sanctions on Russia should also be watched carefully for short-term USD/RUB directions.

Technical analysis

The 21-DMA surrounding 57.35 holds the key to the USD/RUB downturn. Until then, buyers stay hopeful to consolidate the yearly losses from March’s high of 155.00.

Additional important levels

Overview
Today last price	59.175
Today Daily Change	-3.3249
Today Daily Change %	-5.32%
Today daily open	62.4999

Trends
Daily SMA20	57.2575
Daily SMA50	61.0424
Daily SMA100	77.5622
Daily SMA200	75.8189

Levels
Previous Daily High	64.9999
Previous Daily Low	60.875
Previous Weekly High	111.246
Previous Weekly Low	54
Previous Monthly High	111.246
Previous Monthly Low	50.575
Daily Fibonacci 38.2%	62.4507
Daily Fibonacci 61.8%	63.4242
Daily Pivot Point S1	60.5833
Daily Pivot Point S2	58.6667
Daily Pivot Point S3	56.4584
Daily Pivot Point R1	64.7082
Daily Pivot Point R2	66.9165
Daily Pivot Point R3	68.8331

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD pops to yearly highs near 1.1770

EUR/USD rapidly reverses course and hits fresh YTD tops near 1.1780 at the end of the week. The pair’s U-turn comes on the back of the intense sell-off in the Greenback amid the generalised risk-on context.

GBP/USD climbs to four-month tops near 1.3600

GBP/USD is building on its solid weekly advance and is pushing toward the 1.3600 hurdle on Friday, or new four-month peaks. Cable’s strong move higher comes as the Greenback intensifies its decline, while auspicious results on the UK calendar also collaborate with the uptrend.

Gold picks up pace, approaches $5,000

Gold prices keep their uptrend well in place and gear up for an imminent hit to the key $5,000 mark per troy ounce on Friday. The yellow metal’s sharp advance gathers pace amid the increasing weakness in the US Dollar and mixed US Treasury yields across the curve.