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USD/RUB Erases Rise After US-Sanctions Threats, Hovering Above 74.50 Support

RUSSIA
  • USD/RUB trades -0.11% lower this morning, having erased gains following the announcement of US sanctions for any potential invasion of Ukraine.
  • As expected, meetings with the West have delivered little change in the status quo as of yet with both sides’ red lines still intact, but show some scope for agreements on military exercises.
  • US sanctions threats do little to help the dialogue and will likely see talks persisting but becoming drawn out.
  • Interestingly, the trigger for sanctions lies with Biden on his perception of a serious escalation against Ukraine by Russia or its affiliates with 90-day assessment intervals.
  • OSCE talks are in focus today, with Ukraine the key discussion point with headline risks abound in USD/RUB – although no major breakthroughs/deteriorations are expected.
  • USD/RUB continues to teeter on 74.50, while oil holds flat around $84.50/bbl.
  • Intraday Sup1: 74.3325, Sup2: 74.0639, Res1: 74.8956, Res2: 75.063
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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