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RUB Shines, Despite Weakness in Oil Markets

RUSSIA
  • USD/RUB gaps lower at the open to retest the 74.00 handle, supported by early selling pressure on the greenback.
  • Oil markets providing little support to RUB, trading slightly in the red after yesterday's 2.66% sell-off following the resumption of operations at the Colonial Pipeline.
  • Firm selling pressure emerged in the cross yesterday around 75.50, with RUB topping the EM FX gains charts.
  • Sell-side remains constructive on RUB assets, looking to fade rallies in USD/RUB in the near-term, given attractive macro fundamentals, calmer geopolitical scene and cheap relative valuations.
  • These factors also provide cushioning against brewing concerns of a more aggressive repricing higher in the dollar on inflation concerns and an expedited fed hiking cycle.
  • Intraday Sup1: 73.9706, Sup2: 73.5195, Res1: 74.1981, Res2: 74.3885
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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