- USD/RUB remains pressured around intraday low, reverses the week-start rebound.
- EU’s Energy Chief Simson highlights the need to be ready for supply cuts from Russia at any moment.
- US dollar prints four-day downtrend as traders brace for FOMC.
- US Consumer Confidence, recession talks can direct intraday moves.
USD/RUB reverses the week-start gains around 57.80, down 1.15% intraday heading into Tuesday’s European session. In doing so, the Russia ruble (RUB) pair cheers the downbeat US dollar, as well as firmer oil prices of late.
That said, the US Dollar Index (DXY) prints a four-day downtrend, paring intraday losses around 106.40 by the press time. It’s worth noting that a rebound in the US 10-year Treasury yields, down 2.8 basis points near 2.79%, appears to favor the US dollar in consolidating the recent losses.
Behind the US dollar’s recent weakness could be the recently downbeat US PMIs and the second-tier activity data, as well as fears of the US recession. Recently, the global rating giant Moody’s downgraded growth forecasts for Eurozone and the US. Additionally, the greenback traders’ preparations for Wednesday’s Federal Open Market Committee (FOMC) meeting also keep the DXY pressured.
On the other hand, prices of Russia’s key export item crude oil rose for the second consecutive day, up 2.0% daily while refreshing intraday high around $97.80 by the press time, also weighing on the USD/RUB prices.
The oil prices seem to cheer talks that Russia could cut the Eurozone gas supplies anytime. Recently, European Union (EU) Energy Policy Chief Kadri Simson said, per Reuters, “Expect to have a deal on EU regulation to curb gas demand.” On Monday, Russia’s Gazprom announced that it will slow flows on its Nord Stream 1 pipeline. The company will halt another turbine in the pipeline to Germany, which will reduce the flow to just 20% of capacity (currently at 40%) from July 27.
It should be noted, however, that the risk-off mood challenges the USD/RUB bears ahead of the US CB Consumer Confidence for July, prior 98.7. Additionally important will be the chatters surrounding the global recession and EU energy crisis.
Technical analysis
USD/RUB bulls need successful trading above 68.75 to retake controls. Otherwise, a gradual downside towards the yearly low marked in June, around 50.55, can’t be ruled out.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.