- USD/RUB may resume the upside journey amid an escalation of tensions between the US and Russia.
- Russia has started ditching the greenback against other assets on payments against exports.
- The DXY seeks the unfolding of the US NFP for further guidance.
The USD/RUB pair has reclaimed 100.00 after plunging 37.82% from March 7 high at 155.00 as Russia’s invasion of Ukraine has entered into the second month of ‘special operation’ and yet no clear indication has been observed on a ceasefire between the nations.
Although nations are releasing statements of progress in the Russia-Ukraine peace talks, the unavailability of any constructive decree is failing to keep the market sentiment stable.
US President Joe Biden clarified this Sunday that their nation does not have a policy of regime change in Russia. Earlier Biden declared that Russian President Vladimir Putin “cannot remain in power.” Adding to that, Biden calling Russian leader Vladimir Putin a ‘butcher’ has indicated the consideration of the US towards the Russian military activity in Ukraine. This seems to escalate tensions between the US and Kremlin and deviation between the greenback and the Russian ruble.
It is worth noting that Russia has started ditching the might greenback and demanding other currencies from its exporters. Russia’s state-owned Gazprom has demanded euros in place of the greenback from India’s gas giant GAIL (India) against gas imports.
Meanwhile, the US dollar index (DXY) has accessed liquidity on Monday amid a risk-aversion theme in the market. The mighty DXY is auctioning at 99.12 at the press time, 0.32% above Friday’s closing price. This week investors will focus on the US Nonfarm Payrolls (NFP), which is the leading catalyst for the Federal Reserve (Fed) to observe before drawing minutes of May’s monetary policy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains pressured below 1.0800 on renewed USD strength
EUR/USD stays under pressure and declines toward 1.0750 following Thursday's recovery. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Federal Reserve's monetary policy announcements.
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment
GBP/USD trades in negative territory at around 1.2950 in the second half of the day on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders comments from central bankers.
Gold fluctuates below $2,700 amid stronger USD, positive risk tone
Gold trades below $2,700 in the early American session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.
Week ahead – US CPI to shift market focus back to data after Trump shock
After Trump comeback, normality to return to markets with US CPI. GDP data from UK and Japan to also be important. But volatility to likely persist as markets assess impact of Trump.
October’s US CPI rates to be the next big test for the greenback
With the US elections being over, Trump getting elected and the Fed having released its interest rate decision, we take a look at what next week has in store for the markets. On the monetary front a number of policymakers from various central banks are scheduled to speak at some point or the other.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.