We can hardly define the Russian ruble as a popular Forex asset. It’s mostly traded by Russian investors as well as traders from CIS countries. The low popularity of this asset can be explained by the fact that the significant financial institution of this country strictly controls its exchange rate. Simultaneously, the Russian ruble boasts a reputation of an unstable and risky asset.
The ruble quotes demonstrate the highest activity on the Moscow Exchange. By the way, the ruble remains nearly intact after the close of trading on that exchange. We should note that this currency became available to investors only several years ago. The vast majority of brokers neglected this asset for a long time.
The Russian currency traditionally dramatically benefits from the increase in the key interest rate by the country’s principal bank. Well, a similar situation is observed in the evergreen buck when the Fed does the same with the interest rate.
The quotes of this asset are profoundly affected by crude prices. So, if they go up, the Russian ruble ascends and vice versa. The dive in oil prices hits this asset. However, there are also other nuances impacting the Russian currency. For instance, in 2007, crude prices headed south a lot, result in an evident depreciation of the ruble. Meanwhile, in 2014, this asset slumped even more, but that sink wasn’t mostly caused by falling crude prices. The key reason was political.
The overall interest in the Russian currency is limited by risk. Just like any other commodity currencies, the ruble is extremely risky. So, if large stock market players start making venture investments, it results in the growth of the asset.
To successfully trade this currency pair, closely watch the EUR quotes. So, if they slump, the evergreen buck goes up and not only versus the common currency but also against other currencies, including the Russian ruble. Moreover, don’t forget that the country’s major financial institution strictly regulates this currency. This fact can hardly make the ruble interesting for investors.
The exchange rate of this currency pair is profoundly affected by the publication of essential economic news. For example, these might be unemployment, GDP, changes in interest rates, consumer sentiment index, and so on. You should also take into account such the fact that Russia’s key bank always tries to tame strong bounces in the exchange rate. Consider this when developing your trading strategy.
To trade this currency pair, you can utilize long-term, medium-term as well as short-term strategies. You can observe a dominant bullish trend on long timeframes. It’s mostly caused by global economic factors rather than technical ones.
Avoid holding short positions on this pair for a long time if you don’t want to play versus America and Russia’s key bank at the same time. What’s more, the Russian cabinet derives benefits from a cheap ruble. Furthermore, America tries to suppress the Russian ruble via economic sanctions. Combine short positions only with corresponding short-term strategies.
Strictly adhere to the rules of money management when working with this asset. The maximum amount you can afford to lose shouldn’t exceed 10% of your trading deposit. Otherwise, any sudden bounce of the asset can eat up a massive portion of your deposit.