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US Sanctions Threats Spook USD/RUB, 73.50 Remains Sticky

RUSSIA
  • USD/RUB spiked higher at the open, spooked by moves by republican Senators to reinstate Nord Stream 2 sanctions recently waived by Biden.
  • The 24 May Special US Senate Committee Briefing will be watched closely for adoption, however, by Biden's own admission – it remains a "long shot" to stop NS2's completion.
  • 73.50 proved, yet again, to be a sticky level for the cross in yesterday's session with sustained weakness in Crude markets dampening RUB strength.
  • The prospect of returning Iranian supply has thrown off supply-side dynamics with an additional 1m bbls/day about to be released into markets by the back end of 2021.
  • JPM updated its oil forecast to $74 by end 2021.
  • Putin set to attend the Eurasian Economic Council amid a low point in regional relations.
  • Intraday Sup1: 73.4728, Sup2: 73.1718, Res1: 73.7436, Res2: 73.9706
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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