USD/RUB tumbles to lows near 62.20, Brent recovers

The now softer tone in the greenback is pushing USD/RUB to test the lower end of the range in the 62.20 region.

USD/RUB focus on oil, Fedspeak

The pair briefly tested fresh multi-day lows near 62.10 during overnight trade, just to reclaim some pips soon afterwards albeit maintaining the red territory.

The now softer tone around the US dollar is collaborating with today’s downside in spot, while the recovery in crude oil prices has lifted the barrel of Brent crude closer to the key $52.00 mark, adding to the bid tone around RUB.

In the positioning space, speculative net shorts have been drastically reduced to around 650 contracts during the week ended on October 18, taking net longs to record highs around 32K contracts according to the latest CFTC report.

On the data front, Markit’s advanced Manufacturing PMI and the Chicago Fed National Activity index are due later in the NA session. In addition, NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral) are all due to speak later.

USD/RUB levels to watch

At the moment the pair is losing 0.29% at 62.19 and a break below 61.85 (2016 low Oct.10) would expose 60.70 (low Oct.9 2015) and then 48.79 (low May 13 2015). On the flip side, the next up barrier lines up at 62.67 (20-day sma) followed by 63.49 (high Oct.13) and finally 63.89 (55-day sma).