USD/RUB plummets to lows around 64.50, OPEC eyed

The Russian Ruble is sharply higher vs. its American peer today, with USD/RUB coming down to test lows in the 64.50 area.

USD/RUB attention to OPEC

Spot is challenging weekly lows in the area of the mid-64.00s, dragged lower by the increasing demand of the Russian currency.

The sharp recovery in crude oil prices has lifted the barrel of Brent crude above the critical $50.00 mark backed by rising hopes on a deal at the OPEC meeting, lending extra legs to RUB.

Optimistic headlines coming from Saudi and Iraqi officials earlier in the morning have emphasized the imminence of a deal to limit the oil production at today’s OPEC meeting, all collaborating with the pair’s downside in spite of the bid tone around the buck.

Other than the OPEC meeting, spot should pay attention to the US calendar, where, the ADP report is due ahead of Personal Income/Spending, inflation figures tracked by the PCE, the Chicago Fed PMI and Pending Home Sales, all preceding the Fed’s Beige Book. In addition, FOMC’s J.Powell (permanent voter, neutral) and Cleveland Fed L.Mester (voter, hawkish) are due to speak

USD/RUB levels to watch

At the moment the pair is retreating 0.88% at 64.53 facing the next support at 64.31 (low Nov.25) followed by 64.17 (100-day sma) and then 63.49 (low Nov.22). On the other hand, a break above 65.49 (high Nov.29) would expose 65.80 (200-day sma) and finally 66.48 (high Nov.14).