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Brent Buoys RUB on 5.8m bbl API Draw; Higher CPI Keeps CBR Cautious

RUSSIA
  • USD/RUB opens slightly higher after a firm push below 74.00 on buoyant oil prices and a weaker greenback.
  • Brent continues to rally towards $60/bbl after an API draw of 5.8m bbls vs 2.3m bbls exp, and signs of recovery in Chinese demand.
  • Higher CPI yesterday also reinforced a more hawkish stance from the CBR for the time being, maintaining attractive RUB carry at current levels for the next ~4-6 months.
  • Sell side seen updating USD/RUB targets to 68-70.
  • Pullback in USD may see the cross drift higher before making the next leg lower.
  • Res1: 73.8939, Res2: 74.1755, Sup1: 73.3845, Sup2: 73.1217
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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