USD/RUB keeps lows near 58.00

The Russian currency is trading on a firm fashion vs. the buck at the beginning of the week, taking USD/RUB to the area of daily lows in the 58.00 neighbourhood.

USD/RUB focus on oil, FOMC

RUB is extending last Friday’s gains as the barrel of Brent crude has managed to recover the positive territory for the time being, sending spot to test fresh 4-day lows in the 58.00/57.90 region.

In the meantime, the buck remains bid so far today always backed by expectations of a Fed rate hike at its meeting next week. According to Reuters, the probability of a rate hike later this moth is around 83%.

On the positioning side and according to the latest CFTC report, RUB net longs have receded to 6-week lows during the week ended on February 28, with Open Interest also accompanying the decline.

Data wise in the US space, Factory Orders expanded 1.3% inter-month in January and 0.3% stripping the Transportation sector. Later in the session, Minneapolis Fed N.Kashkari (voter, centrist) is due to speak.

USD/RUB levels to watch

At the moment the pair is retreating 0.17% at 58.12 and a breach of 57.59 (low Feb.27) would aim for 57.31 (low Feb.22) and then 56.57 (2017 low Feb.15). On the other hand, the next up barrier is located at 58.99 (high Mar.3) followed by 59.48 (55-day sma) and finally 59.59 (high Feb.8).