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USD/RUB Edges Closer to 75.00 Ahead of OPEC+ Meeting, Geopolitical Risks In Focus

RUSSIA
  • USD/RUB trades +0.57% higher this morning, tracking early strength in the BBDXY with oil markets mostly flat so far.
  • Brent found support around $77/bbl yesterday, with the focus on $80 resistance for the next leg higher towards the October highs.
  • OPEC+ is expected to meet today with markets anticipating the cartel will stick with planned Feb output increases.
  • Geopolitical tensions will be the key focus this week ahead of the weekend US-Russia negotiations.
  • Relations remain frayed at this juncture, with neither side backing down from its position – but showing an openness to dialogue.
  • Embedded geopolitical risk premia have edged slightly lower from the mid-December peak, but remain notably elevated with the 5Y CDS trading at 123.60.
  • Markets will likely be tactical on RUB in the lead-up to the meeting, with decent resistance in USD/RUB coming in around 75.1198-75.9190.
  • Intraday Sup1: 74.5023, Sup2: 74.3325, Res1: 75.0630, Res2: 75.285
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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