USD/RUB probing highs near 56.70

The Russian currency is trading on the defensive today, lifting USD/RUB to test the upper end of the range in the 56.70/75 band.

USD/RUB unchanged on CPI

The pair is reverting yesterday’s losses, as the persistent decline in crude oil prices keeps undermining RUB. In fact, the barrel of European reference Brent crude is testing multi-day lows in the vicinity of the $49.00 mark, down for the third session in a row so far.

In addition, Russian inflation figures tracked by the CPI showed consumer prices rising more than expected 0.4% inter-month in May and 4.1% over the last twelve months. Inflation figures thus remain around the CBR’s 4% target, although Governor E.Niabullina said on Monday that the central bank could consider a rate cut at its meeting later in the month.

On the Russian data front, the weekly report on FX reserves held by the CBR is due on Thursday seconded by April’s trade balance results.

USD/RUB levels to watch

At the moment the pair is up 0.12% at 56.67 and a surpass of 56.78 (55-day sma) would aim for 56.93 (high May 31) and then 57.01 (high May 25). On the other hand, the next support lines up at 56.11 (low Jun.1) seconded by 56.00 (low May 25) and then 55.67 (2017 low Apr.25).