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OPEC+ Indecision Puts The Brakes on USD/RUB downside

RUSSIA
  • USD/RUB opens higher in line with high-beta peers and softer oil prices off the back of a deadlock in the first day of OPEC+ meetings.
  • Russia & UAE remain in favour of output hikes (+500k in Feb) on improving demand conditions, while the Saudis remain cautious about the spread of the new covid variant and its capacity to cause demand destruction in 1Q21.
  • Brent pulled back from $53.00 yesterday, trading just below the $51 handle.
  • USD/RUB seeing upside pressure on broad risk aversion, and may look to press higher towards 75.4614 if 75.0470 breaks and OPEC+ production hikes are agreed
  • but may pull back to 74.00 and below on a rollover at current levels.
  • Sell side still optimistic about RUB in 2021.
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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