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Ruble Rallies as Donbass Ceasefire Agreement Emerges, Putin's Year-End Speech Eyed

RUSSIA
  • USD/RUB trades -0.66% lower this morning, on the back of tentative signs of de-escalation in the Donbass as Ukraine hails progress on strengthening the ceasefire.
  • While this is an encouraging sign in the Ukraine-Russia spat, proxy tensions remain elevated with the US & NATO – although both are showing a willingness for talks in early Jan.
  • Brent is teetering on the $75 handle after a second session of gains with an eye on $77.37 above, should price action hold above the $75 level.
  • Putin’s End of year speech will be watched closely for geopolitical headline risks amid a slight easing in tensions, with the focus shifting to security proposals and January negotiations on the geopolitical front.
  • USD/RUB has made a new December low, taking a leg below the 200dma this morning.
  • Next downside supports are the 100 & 50dmas below at 72.87 & 72.70 respectively.
  • Intraday Res1: 73.5033, Res2: 73.6763.
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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