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USD/RUB: Brent Briefly Registers Contango, Traders Concerned About Excess Supply

RUSSIA
  • USD/RUB trades -0.08% lower this morning, paring a portion of the USD-induced move higher in yesterday’s session that took price action back above the 200dma.
  • Oil markets trade -0.60% softer this morning as concerns over supply/demand imbalances relating to the spread of Omicron continue to weigh on sentiment – pushing monthly prompt spreads in Brent briefly into contango yesterday.
  • API inventories also registered a smaller draw than expected at -815k bbls vs -2.1m exp.
  • Today’s key focal point is the FOMC this evening, where the MPC is expected to double the pace of tapering and deliver a more hawkish dot plot with 2-3 hikes pencilled in for 2022.
  • Hence, USD price action will be the primary driver today.
  • Additionally, GDP data and weekly CPI figures will be eyed for clues on the CBR’s upcoming meeting and whether it means the end of the hiking cycle or not, should price pressures show a meaningful deceleration in Dec-1Q22.
  • Intraday Sup1: 73.5033, Sup2: 73.1560, Res1: 74.0639, Res2: 74.5023
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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