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RUB Takes a Hit as Brent Pulls Back Towards $50/bbl

RUSSIA
  • USD/RUB suffering the most at the hands of a firmer USD, correcting ~2% higher towards 75.00 with a relatively hawkish CBR doing little to stem the bleeding.
  • Brent now trading closer to $50/bbl (-3.44%) on upgraded Covid concerns across Europe, dragging USD/RUB higher.
  • Stretched long positioning in RUB & unhedged OFZs, coupled with low seasonal liquidity, also accentuating the move higher.
  • USD/RUB comprehensively cleared the 200dma (74.3267), but may run into sellers around 75.00.
  • Topside resistance comes in at 75.3515, 75.6388 & 76.5365. Global factors to dominate this week with limited local catalysts on the agenda.
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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