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Navalny Protests Spark RUB Volatility; Virus Concerns Weigh on Brent

RUSSIA
  • USD/RUB opens lower after an unusually pronounced unwind on Friday as demand concerns weighed on Brent and local concerns over Navalny protests weighed on RUB sentiment.
  • Brent has managed to claw back some gains towards $56, despite signs that China (core driver of oil demand) may be facing another wave of Covid infections.
  • Softer open for the greenback and more buoyant looking US equity futures, may add further downside pressure on the DXY today, provided spot can take out last week's lows & the 90 handle.
  • Spot USD/RUB now hovering above the 50dma at 74.6068 which is drifting towards the 200dma for a bearish golden cross.
  • Focus this week on global response to Navalny protests, which look increasingly likely to spark a Western sanctions response with the Kremlin showing little chance of bowing to pressure to release him.
  • Intraday Sup1: 74.5208, Sup2: 74.1755, Res1: 75.0574, Res2: 75.3020
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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