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RUB Longs Pared Back at 73.00; Upbeat Commodities Continue to Provide Support

RUSSIA
  • USD/RUB opens lower, outperforming its CEEMEA peers and bucking DXY strength mostly on upbeat commodities
  • Traders citing capped downside in Brent due to vaccine optimism spurring best on higher 2021 demand.
  • Brent also notched higher on reports of a terrorist attack at two Iraqi oil wells, although production not affected.
  • Some sell side noting a reduction in RUB longs at 73.00 yesterday with the aim to add more USD shorts above 74.00.
  • USD/RUB below 200dma - may look to drift back towards 73.00, provided risk sentiment remains accommodative.
  • Headline risks regarding EU summit sanctions extension & Minsk agreement discussions should be noted.
  • Downside support at 72.9693 (61.8% fib on Jun - Nov rally), followed by 72.6391 (Aug 5 low).
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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