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RUB Facing Ticking Sanctions Bomb; Wheat Quota Raises Eyebrows

RUSSIA
  • USD/RUB opens higher on a more buoyant USD and continued weakness in oil futures.
  • Brent slipped this morning on fading hopes for rapid approval of US stimulus and questions raised over demand recovery forecasts.
  • Comments from EU's Borrell about sanctions coming after Navalny's trial may see a gradual rebuild in sanction risk premia baked into RUB assets.
  • For now, USD/RUB continues to grind higher after retesting the 22 Dec high at 75.8504 - which coincides with the 100dma.
  • Permanent installation of wheat export quotas at EUR 50/ton may also be cause for concern as analysts warned of dislocations, should the measures not be temporary.
  • Intraday Sup1: 75.4614, Sup2: 75.0980, Res1: 75.8504, Res2:
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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