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RUB Brushes Off Demand-Side Oil Concerns, Eyes Stronger GDP

RUSSIA
  • USD/RUB opens lower this morning, brushing off early weakness in oil markets.
  • The cross ended yesterday's session a fraction higher, having failed to hold below 73.40 support.
  • Brent slipped overnight following downbeat demand forecasts from the IEA on rising risks from the Delta variant.
  • Capital economics said, that although OPEC kept its demand forecast intact, the near-term outlook had deteriorated and may see the cartel adjust its supply plans at the next meeting.
  • Domestic focus today will be on 2Q GDP data due 1700BST today, expected to show a sharp acceleration to 10% vs -0.7% prior – which should provide some support to RUB.
  • USD/RUB now faces dynamic support from the 50dma at 73.3161, with a close below the average opening up last week's lows around 72.68 – provided oil markets remain mostly stable.
  • Intraday Sup1: 73.3934, Sup2: 73.2182, Res1: 73.7458, Res2: 73.9435
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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