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RUB Plays Catch-Up to Buoyant Oil Markets While Ukraine Tensions Brew in the Background

RUSSIA
  • USD/RUB gaps 0.34% lower at the open in line with firmer oil markets and broad-based selling pressure on the BBDXY.
  • Brent gained a substantial +5.78% in yesterday's session forming a large bullish engulfing candle on the daily chart after finding support at $65/bbl – aided by risk-on conditions and a softer USD.
  • Focus turns to Lateral resistance at $70/bbl & the 100dma at $69.52, with a close above reinforcing bullish conditions.
  • Domestically, tensions with Ukraine are increasingly coming into focus following yesterday's Crimea Platform Summit – where President Zelensky clearly articulated his ambitions to reunify Crimea with Ukraine.
  • With a number of key meetings on the agenda this week and into next month, geopolitical frictions between Russia, Ukraine and the West may become more pronounced and are worth monitoring.
  • USD/RUB price action has cleared the 74.00 handle and 100dma this morning and will continue to trade in line with global risk conditions and oil markets today.
  • Intraday Sup1: 74.8430, Sup2: 73.7458. Res1: 74.0828, Res2: 74.2486
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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