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USD/RUB Pressures 74.00 as Oil Outlook Brightens, Mishustin to Speak

RUSSIA
  • USD/RUB trades flat to lower at the open, despite an early bid in oil futures back towards the $69 mark.
  • Oil bumped up overnight on the back of a 2.5m bbl API inventory draw (vs 2.8m draw exp), and optimism over OPEC's brighter demand outlook.
  • Markets remain concerned about supply-side dynamics as the Colonial Pipeline closure has seen petrol stations from Florida to Virginia run dry.
  • Local focus will be on PM Mishustin this morning, reporting back on Govt progress.
  • No incisive questioning is expected from opposition, as experts say this could damage their prospects in the Autumn Duma elections.
  • US data will be the core EM FX price action driver for the remainder of the week, with CPI due today.
  • RUB still remains a brightspot in EM with the sell side happy to fade rallies in USD/RUB.
  • Many analysts have targets in the 71-72 range, 2.76-4.12% below current levels.
  • Intraday Sup1: 73.9706, Sup2: 73.7436, Res1: 74.2086, Res2: 74.3885
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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