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Forex Market: USD/RUB eases from one-week highs on hopes of diplomatic resolution to Ukraine crisis

After two consecutive trading days of gains, USD/RUB came off a one-week peak on Monday on new hopes of a diplomatic resolution to one of the most perilous European crises in decades.

According to an announcement by Macron’s office on Monday, the French leader has proposed to Biden and Putin a summit on “security and strategic stability in Europe.”

In response, the White House said the US leader had accepted the proposed meeting “in principle”, but only “if an invasion hasn’t happened.”

French President’s office and the White House said the substance of the summit would be worked out by US Secretary of State Antony Blinken and Russia’s Foreign Minister Sergei Lavrov at their meeting scheduled for February 24th. Ukraine’s role in the summit still remains unclear.

Moscow has repeatedly denied Western allegations that it may be planning an aggressive move against neighboring Ukraine. Still, Russian assets have been harshly affected by concerns of a confrontation, which could result in sweeping new Western sanctions against Russia.

The White House has already readied an initial package of sanctions against Moscow, which includes prohibiting US-based financial institutions to process transactions for major Russian banks.

As of 8:42 GMT on Monday USD/RUB was edging down 0.19% to trade at 77.1852. Earlier today the Forex pair went up as high as 77.5203, which has been its strongest level since February 14th (78.0683). The exotic currency pair has edged down 0.45% so far in February, following a 3.65% gain in January.

Brent crude oil, a global benchmark for Russia’s main export, was edging up 0.38% on Monday to $94.00 per barrel. Earlier in the trading session the commodity rose as high as $94.96 per barrel, which has been its strongest price level since February 16th ($96.02 per barrel).

The rouble-based MOEX stock index was losing 3.22% to 3,284.14 on Monday, while extending a move away from last Wednesday’s 1-month high of 3,683.95.

Daily Pivot Levels (traditional method of calculation)

Central Pivot – 76.8197
R1 – 77.9955
R2 – 78.6589
R3 – 79.8347
R4 – 81.0104

S1 – 76.1563
S2 – 74.9805
S3 – 74.3171
S4 – 73.6536

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