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RUB Rallies as Putin Fails to Deliver Details on Ukraine, Military Drills Eyed Today

RUSSIA
  • USD/RUB opens lower on the back of a softer USD and slightly more supportive risk conditions.
  • USD/RUB pulled away from 77.00 resistance yesterday after Putin warned the West not to cross its red lines, but fell short of providing details or a more aggressive stance on Ukraine.
  • Sabre rattling continues today, however, with substantial military drills in Crimea and the Black Sea.
  • Oil markets continue to trade in the red as EIA inventory data showed a larger than expected gasoline build, amplifying demand concerns amid a pronounced covid surge in India.
  • Focus remains on Ukraine headline ping-pong and tomorrow's CBR where broad expectations align with a +25bp hike, with risks tilted towards +50bp (MNI CBR Preview due today).
  • USD/RUB has cleared the 76.50 level, but should remain pegged with its wide range (75.50-77.50) in the absence of a material de-escalation in Ukraine tensions.
  • Intraday Sup1: 76.3312, Sup2: 76.0210, Res1: 76.6221, Res2: 76.8484
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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