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USD/RUB Gaps Lower as Oil Regains Some Composure, Geopolitical Tensions Simmer

RUSSIA
  • USD/RUB trades -0.77% lower this morning, gapping down to teste the 75.00 handle in early trading as oil markets recover from Friday's precipitous decline.
  • Brent has regained almost 5% following a 11.55% slide on Friday as concerns over the Omicron variant caused extensive demand destruction on expectations for more global lockdowns – driving USD/RUB +1.23% higher on the day.
  • Geopolitical tensions continue to simmer in the background with the situation stabilising slightly with potential talks with Biden on the horizon.
  • PMI, weekly CPI, unemployment, retail sales and wage data will be monitored locally this week, while US ISM & NFPs are the big-ticket international prints on the agenda.
  • USD/RUB will likely trade in line with covid/oil developments and global risk sentiment this week as markets negotiate an uncertain period for central bank policy going into 2022.
  • Intraday Sup1: 74.7558, Sup2: 74.3325, Res1: 75.2853, Res2: 75.5636
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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