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RUB Volatile Ahead of Borrell Visit; Brent Outperformance Continues

RUSSIA
  • USD/RUB opens lower, supported by buoyant oil markets on higher conviction that OPEC+ is determined to accelerate market rebalancing without delay as inventories decline.
  • Brent now pushing towards the $60 handle, despite risks of a firmer USD.
  • Focus today on EU's Borrell arriving in Moscow for a two-day visit to discuss human rights violations in connection with Navalny's imprisonment.
  • These meetings hold elevated sanctions risks and will likely be a key barometer for the severity of the EU's response.
  • Sanctions will not likely be the immediate outcome, but Borrell will guide as to how the EU will eventually respond or if more negotiations will take place before the decision.
  • USD/RUB continues to trade choppily within the 75.4225-76.38 band, awaiting more clarity on sanctions, now that Navalny has been sentenced.
  • Sell-side happy to stay on the fence for now until a more definitive direction is established. Sup1: 75.4225, Sup2: 74.9969, Res1: 76.3870
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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