It’s not a significant asset in the Forex market. As a rule, Russian traders and traders from CIS countries trade this asset. Russia’s considerable bank strictly controls the ruble, and it’s one of the reasons why this asset is not popular with traders. Another purpose for its low popularity is a risky and unstable nature of this currency.
The Moscow Exchange is the place where the ruble demonstrates the highest activity. The ruble’s quotes nearly freeze once the trading session on that exchange is over. By the way, the Russian ruble came to Forex just several years ago. For a long time, it was ignored by many investors.
The rally influences the Russian ruble in the significant interest rate. However, we can point to the same relationship between the Fed and the evergreen buck.
The quotes of this asset much depend on oil prices. If they rise, the Russian currency jumps and vice versa. The decline in oil prices puts pressure on this currency. Other factors have an impact on the Russian ruble. For example, in 2007, oil prices dived a lot, and it provoked an apparent depreciation of the Russian ruble. In 2014, the ruble tumbled even more, but decreasing oil prices didn’t mostly spur that slump because the main reason was political.
Risk limits the overall interest in the Russian asset. As any commodity currency, it’s hazardous. If large stock market players get down to venture investments, the ruble goes up.
To succeed in trading the Russian ruble, pay attention to the EUR quotes. If they go down, the US dollar rallies and not only against the euro but also versus other currencies, and the Russian ruble isn’t an exception. Don’t forget that the strict regulation of this currency by Russia’s major bank can’t contribute to its popularity.
The exchange rate of this currency pair much depends on the release of major economic news. For instance, these might be GDP, unemployment, consumer sentiment index, changes in interest rates, etc. When developing your trading strategy, it takes into consideration that Russia’s primary financial institution always tames strong moves in the exchange rate.
It’s possible to utilize medium-term, long-term, and short-term strategies to trade this asset. On long timeframes, you can spot a strong bullish trend. It’s provoked by global economic nuances and not technical ones.
Don’t hold short positions on this asset for a long time because only insane people dare to play against the key banks of Russian and America simultaneously. Moreover, a cheap rumble is good for Russia’s government. America utilizes various economic sanctions to put pressure on the Russian primary currency. Short-term strategies are the only ones that can be combined with short positions.
Mind your money management. Make sure you don’t risk more than 10% of your trading deposit. You don’t want to lose a bulk of your deposit due to a sudden bounce in the market, do you?