- USD/RUB prints three-day downtrend as sellers reverse the corrective pullback from 27-month low.
- Russia warns Finland over joining NATO, Ukraine cheers Moscow’s failure to cross Siverskyi Donets river.
- Hopes of easing geopolitical tensions are thin but Fedspeak, US PPI favored USD pullback, firmer oil prices strengthen RUB.
- Russia CPI, US Michigan Consumer Sentiment Index eyed for fresh impulse.
USD/RUB remains pressured towards the lowest levels since February 2020, marked the previous day, as DXY pullback joins cautious optimism and firmer oil prices to favor the pair bears heading into Friday’s European session.
US Dollar Index (DXY) retreats from a 20-year high, flashed on Thursday, as market sentiment improves amid a light calendar and absence of major news during the sluggish Asian session.
That said, the greenback gauge drops 0.08% to 104.65 by the press time. It’s worth noting that the DXY weakness, or retreat to term it the best, could be linked to the US PPI’s matching of the 0.5% MoM market consensus for April, as well as Fed Chairman Jerome Powell’s reiteration of 50 bps rate hikes in the next two meetings. On the same line were comments from San Francisco Fed President Mary Daly who mentioned, “Is it 50, is it 25, is it 75? Those are things that I’ll deliberate with my colleagues, but my own starting point is we don’t want to go so quickly or so abruptly that we surprise Americans”.
On the other hand, WTI crude oil rises 1.0% to $107.80 during a three-day uptrend, eyeing the weekly top of late. The black gold’s latest run-up could be linked to the cautious optimism in the Asia-Pacific region, as well as fears of a European oil embargo over Russian energy imports.
It should be noted that Russia’s latest retreat from the Siverskyi Donets river in Donbas joins China’s hopes of overcoming covid in the short-term and seems to underpin the risk-on mood. On the contrary, Moscow’s warning to Finland, over its plan to join the North Atlantic Treaty Organization (NATO), coupled with Western sanctions, challenges optimists.
Amid these plays, the US 10-year Treasury yields portray a corrective pullback after refreshing a two-week low the previous day, around 2.89% by the press time, whereas the S&P 500 Futures print rises 1.0% while licking its wound near one-year low.
Looking forward, Russia’s Consumer Price Index (CPI) for April, prior 7.6% MoM, will precede the preliminary readings of US Michigan Consumer Sentiment data for May, expected 64 versus 65.2 prior, to direct short-term USD/RUB moves. Though, major attention will be given to headlines concerning coronavirus, geopolitics and Fedspeak.
Technical analysis
A seven-week-old descending trend line, around 67.60 by the press time, keeps directing USD/RUB prices towards early 2020 lows surrounding 61.00.
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.
Recommended content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.