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USD/RUB Breaches 70 Support as the Greenback Slides Pre-FOMC
- USD/RUB BGN trades -0.33% lower this morning, having trimmed some of yesterday’s run lower into the close.
- Falling UST yields and a softer greenback pre-FOMC fuelled the break through 70 support to reach an intraday low at 66.43, with the cross brushing off the larger than expected 300bp CBR rate cut last week.
- Today’s focus will be on USD-side drivers ahead of the FOMC meeting with markets eyeing dialogue surrounding balance sheet run-off (expected June) and scope for a +75bp hike in the coming months with +105bp priced into rates futures by July.
- The EU oil embargo is also expected to be announced today, which should weigh more heavily on the pending Russian recession in 2022 & 2023 as Russian oil in phased out at the end of the year.
- With no negotiations on the horizon, the conflict is set to continue with defence experts eyeing 9 May for Putin’s next military steps. 65.00 & 63.00 represent the next key downside levels on a break below yesterday’s lows at 66.43.
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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.