Free Trial

USD/RUB Plays Catch-Up after Holidays, EU Sanctions Offering Opportunities to Fade Rallies

RUSSIA
  • USD/RUB opens 0.87% lower, playing catch-up to buoyant oil prices after yesterday's holiday UST-induced volatility on Monday that saw spot retest 75.00 before pulling back to close ~74.30.
  • Watered down EU sanctions on Kremlin officials seems to be having little effect on the cross, as was broadly expected - falling short of generating a material shift in the sanctions narrative.
  • Counter-intuitively these headline and uncertainty-driven spikes higher actually made for useful opportunities to fade rallies with RUB still decidedly undervalued vs high-yielding peers.
  • Brent dipped slightly this morning on a lower than expected API inventory draw at -2.2m bbls vs -5.2m exp on the back of supply concerns surrounding the Texas deep freeze - EIA data will be watched closely today.
  • Sup1: 73.6452, Sup2: 73.5479, Res1: 73.9016, Res2: 74.2086
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.