USD/RUB advances to session tops near 59.50

• Softer Brent crude helps spot gain ground.
• RUB weaker post-CPI prints.
• The pair’s rally on a 4-week positive streak.

The Russian currency keeps losing ground on Wednesday, lifting USD/RUB to fresh multi-week tops in the mid-59.00s.

USD/RUB up on oil correction

RUB is depreciating for the fourth consecutive week so far, motivating spot to gain more than 4% since October’s lows in the 57.00 neighbourhood to today’s fresh tops in the mid-59.00s

RUB stayed pretty much decoupled from the exceptional gains in prices of the European reference Brent crude, which gained nearly 18% pretty much during the same period: October’s lows around the $55.00 mark to yesterday’s peaks in the $64.60/65 band.

Adding to the current weak scenario, the Russian central bank lowered its key rate by 25 bps to 8.25% at its week in late October. This news was followed by lower than expected inflation figures in the Russian economy published earlier this week, with consumer prices rising at an annualized 2.7% in October, well below the CBR’s 4% target.

USD/RUB levels to watch

At the moment the pair is up 0.26% at 59.51 and a break above 60.29 (low Aug.11) would aim for 60.83 (high Aug.3) and finally 60.98 (2017 high Jul.11). On the other hand, the next support is located at 58.71 (100-day sma) followed by 58.43 (10-day sma) and then 58.13 (200-day sma).