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USD/RUB Pulls Back From 3-Month Low as $ Volatility Holds
- USD/RUB opens higher on a firmer greenback this morning after testing key support at 72.6566 to make a new 3-month low in yesterday's session.
- Early weakness in oil markets brought on by demand-side concerns in Europe (Feb road fuel consumption -10.8%) was somewhat offset by a dip in API inventories of -1m bbls vs expectations for a 3m bbl build.
- Analysts note a narrower weekly draw being a signal of returning US capacity after the Texas Freeze.
- USD/RUB still remains on the precipice of a larger move lower, with the sell side still confident in the RUB's cheap relative valuation vs oil prices & other high-beta EM FX.
- Moves higher towards 74.00 on UST yield volatility will likely be seen as fading opportunities, but uncertainty over a harsh sanctions response from the UK & UK is an ever-present tail risk to note.
- Focus today is on the Fed meeting and follow through in US Treasury volatility.
- Additionally upside prints in PPI and weekly CPI should reinforce the need for reactive CBR hikes in April/June.
- Intraday Sup1: 72.9534, Sup2: 72.5433, Res1: 73.4212, Res2: 73.7368
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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.