USD/RUB extends the upside to 56.70, session tops

The Russian Ruble is depreciating further on Thursday, pushing USD/RUB to test the upper end of the daily range near 56.70.

USD/RUB up on oil rout

Renewed RUB weakness is prompting spot to retreat for the third session in a row today following declining crude oil prices. In fact, the European reference Brent crude is extending the leg lower to the $50.70 region, as the downbeat sentiment following the OPEC decision seems to still weigh on traders.

In the data space, Russian manufacturing PMI came in at 52.4 in May, matching April’s reading. Later in the session, the usual weekly report on FX reserves held by the CBR is due followed by the US docket: ADP report, ISM Manufacturing and the speech by FOMC’s J.Powell (permanent voter, centrist).

RUB has derived further downside after Russian Minister of Economic Development M.Oreshkin said crude oil prices may be much lower within 1-2 years.

USD/RUB levels to watch

At the moment the pair is up 0.17% at 56.65 and a surpass of 56.93 (high May 31) would aim for 56.94 (20-day sma) and finally 57.01 (high May 25). On the other hand, the next support lines up at 56.29 (low May 29) seconded by 56.00 (low May 25) and then 55.67 (2017 low Apr.25).