Commodity currencies are weakening against the US dollar today as a supply glut weighs on oil prices. Despite efforts to rebound, crude is still trading at the lowest level since April. Today, Brent crude is trading at 42 US dollars 13 cents a barrel. US benchmark crude has settled at about 40 dollars a barrel. Oil is unable to break through April lows amid the negative sentiment ahead of the fresh weekly data from the US Department of Energy on oil inventories. The US Energy Information Administration is due to release the report that is expected to reveal a decrease in US crude inventories. So the market is in suspense to find out whether the official data coincides with the survey from the American Petroleum Institute. Aleksander Davydov comments: Yesterday, the market took no notice of the report from the American Petroleum Institute. The survey logged a 1.3 million drawdown in US crude inventories. The thing is that data in API reports often differs from official data. Thus, if the US Department of Energy confirms today that oil stocks contracted by 1.8 million barrels, it could provide both crude and the Russian ruble with solid support. As a result, the dollar/ruble pair could strengthen to 65.80. End of comments Importantly, the Russian currency is showing resilience to its main rival. Traders are in no hurry to sell rubles after the upbeat report on Russia’s services PMI for July. According to the Markit survey, Russia’s services PMI for July showed the strongest score for three and half years. The indicator of business activity surged to 55 in July from 53.8 in June. Experts view this solid result as an early sign of the economic recovery in Russia. Meanwhile, the market is alert to the closely watched official report on US oil stocks that will affect a further dynamic of the dollar/ruble pair. https://www.instaforex.com
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