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Downside Momentum in USD/RUB Slows Around 70 as Markets Eye Potential EU Oil Ban

RUSSIA
  • USD/RUB BGN trades +0.21% higher this morning, with downside momentum in the cross slowing somewhat around the 70 handle.
  • The CBR opted for an above-consensus -300bp rate cut to 14% on Friday, exceeding expectations for a 200bp cut with the balance of risks shifting in favour of growth in the CBR’s reaction function.
  • The cross was little changed on the decision, but markets will be eyeing EU progress towards an oil embargo with Germany seemingly turning in favour of a ban on Russian oil – which could spark a deeper recession than the 8-10% FY22 decline forecast by the CBR.
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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