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USD/RUB Gaps Lower as OPEC+ Abandons Talks for Aug Supply Increase

RUSSIA
  • USD/RUB gaps lower at the open, with RUB buoyed by upside in Brent and selling pressure on the BBDXY.
  • Price action failed to hold above 73.50 in yesterday's session, with sellers pressuring the greenback in thinner holiday liquidity.
  • Oil jumped to a three-year high as OPEC+ members failed to reach an agreement on August supply levels – abandoning talks with no date agreed for more discussions.
  • This leaves production levels unchanged for August amid higher demand unless talks can be salvaged.
  • Relations between the US and Russia remain frosty with Russian Diplomats/Ministers exchanging jabs here and there and no signs of any major progress towards an improvement in the current status quo.
  • Continued threats of "harsh responses" from Russia on any infringements in the Black Sea should be monitored amid NATO's Sea Breeze drills until 10 July.
  • Markets focused on US ISM & PMI data this afternoon and Russian CPI data tomorrow just ahead of the FOMC minutes.
  • Intraday Sup1: 73.0236, Sup2: 72.6637, Res1: 73.3652, Res2: 73.4728
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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