Chart Of The Day: Russian Ruble Pressured By U.S. Sanctions, Oil Outlook

Chart Of The Day: Russian Ruble Pressured By U.S. Sanctions, Oil Outlook

Unlike the US Federal Reserve, which has been going out of its way to it won't be raising rates anytime soon, Russia's central bank hiked on Apr. 23, for the second time this year, from 4.5% to 5%. Compared to the US's near-zero rate, on the face of it, a bullish position verus the dollar should be a no-brainer for traders.

So why has the RUB recently been sold off? Perhaps investors aren't convinced of the European country's given the sanctions imposed on it by the US because of the standoff over Russia's annexation of the Crimea as well as its treatment of anti-government activists domestically.

Plus if we're right about oil's technicals, prices are likely headed lower, which means the ruble, as a petrocurrency, will probably suffer.