USD/RUB turns negative near 58.20 on Brent gains

The Russian Ruble regained the firm footing today, now pushing USD/RUB to return to the 58.20 region after hitting multi-week tops around 58.80 in early trade.

USD/RUB offered after data, oil

The pair remains on its way to close the third consecutive week with gains despite today’s pullback, advancing more than 5% since fresh YTD lows in the 55.70 region seen in late April.

RUB continued to depreciate following the persistent decline in crude oil prices, with the barrel of the European reference Brent dropping to levels last seen in late November around $46.60 in early trade. However, Brent crude managed to revert the negative tone and is currently staging a rebound beyond the $48.00 mark, supporting RUB’s bounce.

Data wise in Russia, inflation figures tracked by the CPI rose at an annualized 4.1% during April, practically hitting the CBR’s 4% target. Recall that at its last meeting, the central bank hoped to clinch the inflation goal towards year-end.

In the US, April’s Non-farm Payrolls showed the economy created 211K jobs, more than initially estimated, while the jobless rate ticked lower to 4.5%.

USD/RUB levels to watch

At the moment the pair is losing 0.11% at 58.30 and a break below 57.39 (low May 4) would open the door to 57.34 (55-day sma) and finally 56.80 (20-day sma). On the flip side, the next hurdle is located at 58.80 (high May 5) followed by 59.60 (high Mar.14) and finally 60.56 (high Jan.28).