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USD/RUB Eyes Key Long-Term Supports, Bolstered By Bullish Oil Markets

RUSSIA
  • USD/RUB opens higher, but slightly less so than peers ZAR & TRY.
  • Oil markets pulled back from the $70 handle, but remain underpinned by bullish outlooks from analysts on tight supply and improving demand-side factors.
  • USD/RUB is toying with the underside of the 75-73.50 lateral range, having briefly traded below 74.4212 support during yesterday's session.
  • Sell-side remains optimistic about RUB on a normalisation in UST upside/volatility, provided the CBR can anchor risking price pressures.
  • A move through the key 73.00 level & December swing low at 72.6566 unlocks a more comprehensive move towards the 68-70 zone, narrowing the gap to other high-yielders somewhat.
  • Focus next week on the CBR, expected to keep rates on hold – reinforcing the more cautious policy normalisation stance announced in the prior meeting.
  • Intraday Sup1: 73.4212, Sup2: 73.1492, Res1: 73.6452, Res2: 73.9016
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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