USD/RUB off lows, still depressed near 58.00

The Russian currency gained extra traction at the beginning of the week, sending USD/RUB to fresh lows in the 57.85/80 band earlier in the session.

USD/RUB in fresh multi-month lows

The pair dropped to fresh lows near 57.80 during the European trading hours, levels last seen in July 2015 following the generalized lack of direction in the US Dollar.

In addition, the buying interest around RUB seems to have picked up extra pace after Trump’s national security adviser M.Flynn said he has not discussed lifting Russian sanctions at his meeting with the Russian ambassador to Washington.

Furthermore, the Russian central bank (CBRF) said the country should remain in liquidity surplus this month, as FX purchases will not affect liquidity.

Data wise this week, the salient points in the US calendar will be Yellen’s testimonies and CPI figures, while Industrial Production, Producer Prices and the weekly report on the CBRF FX Reserves are due in Russia.

From the speculative community, RUB remains well underpinned, as net longs stayed at multi-week tops in the week to February 7, as per the latest CFTC report.

USD/RUB levels to watch

At the moment the pair is losing 0.44% at 57.96 and a break below 57.85 (2017 low Feb.13) would aim 55.27 (monthly low July 2015) and finally 53.03 (monthly low June 2015). On the upside, the next hurdle lines up at 58.96 (high Feb.10) followed by 59.41 (20-day sma) and finally 59.59 (high Feb.8).