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USD/RUB Marches Higher as Ukraine Tensions Rattle RUB Sentiment

RUSSIA
  • USD/RUB opens higher on an uptick in the dollar, offsetting moderate strength in oil markets.
  • Brent continues to claw back gains from Monday's sell-off as favourable risk conditions and an API oil stockpile draw overshadowed signs of progress in Iran Nuclear deal talks.
  • USD/RUB continues to press higher as uncertainty about military activity in the Ukraine escalates, despite questionable benefits for either side in a military confrontation.
  • The announcement of military readiness drills sparked more RUB selling in yesterday's session and should continue to be a key touchpoint for RUB sentiment.
  • US calls for clarification of intentions in Ukraine is also cause for concern amid frayed US tensions and expectations for further sanctions.
  • Markets will also keep an eye on Nabiullina at the Moscow Exchange forum for headline risks today after CPI printed at 5.78% yesterday – expected to be the cyclical peak.
  • USD/RUB continues to march higher with the sell-side showing little love for RUB assets, until uncertainty subsides.
  • Also worth noting from Monday: RUSSIAN FINMIN TO BUY RUB8.4B/DAY WORTH OF FX APRIL 7 - MAY 7
  • Intraday Sup1: 77.2794, Sup2: 76.6579, Res1: 78.0351, Res2: 78.4993
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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