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Free AccessRUB Underperforms EM Peers As Sanctions Uncertainty Weighs
- USD/RUB opens higher this morning, underperforming EM high yield peers most likely on uncertainty surrounding US sanctions and weakness in oil markets.
- Brent has continued to pull back on a firmer dollar and expectations for ~1.5m bbls/day of OPEC+ output to come back to market at this week's meeting (Thurs).
- Brent is now trading below $63/bbl after peaking around $67/bbl last week and may continue to slide if Chinese demand data remains on a weakening trend.
- USD/RUB is trading a broad range between 73.50-75.00, tracking broad risk sentiment and commodity prices.
- US sanctions today will be interesting to monitor for broadness in scope, given the expanded mandate to include hacking incidents.
- Initial upside pressure may prevail in the pair following headlines, but will subside sharply if the sanctions fall short of causing material damage to the economy.
- Asset freezes and travel bans of Kremlin officials have seen limited marginal impact to date, but some are concerned more limitations may be imposed on OFZ markets.
- Intraday Sup1: 74.5050, Sup2: 74.1611, Res1: 74.7567, Res2: 75.0980
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.