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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.
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USD/RUB Continues to Flirt With its 200dma, CBR Hikes To Cushion RUB vs High-Beta Peers
- USD/RUB trades -0.11% lower this morning, hovering around the open as markets tread water ahead of tomorrow’s FOMC.
- The cross continued to flirt with the 200dma, but managed to close below the level at 73.54.
- Oil markets are holding a fraction higher this morning with an eye on API inventory data coming out this afternoon.
- Putin will also be delivering a briefing on Russia’s coronavirus measures to tackle the spread of the Omicron variant today, while case numbers remain around the 30k/day mark on a declining trajectory.
- Beyond this, markets will start to move in anticipation of a more hawkish Fed with expectations for a doubled taper speed and potentially more aggressive dot plot signalling 2-3 hikes in 2022.
- This could inject some volatility into the USD side of EMFX this week, followed by the CBR meeting on Friday where markets are expecting the CBR to deliver +75-100bp in hikes (bbg consensus +100bp).
- This should provide some support to the RUB and protection against potential USD strength relative to late-hiking high-beta peers, such as ZAR.
- Intraday Sup1: 73.1560, Sup2: 72.8416, Res1: 73.6763, Res2: 73.7629
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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.