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USD/RUB Pulls Back From its 200dma, Geopolitical Risks Still Present

RUSSIA
  • USD/RUB trades -0.34% lower this morning, broadly in line with early selling pressure on the BBDXY.
  • Geopolitical risks continue to dominate sentiment with the constant drip feed of headlines keeping RUB on the backfoot.
  • Oil also trades softer this morning following an API inventories draw, which traders say makes it more likely that Biden will release the US strategic reserves to alleviate oil-based pressures on inflation.
  • Brent is hovering around $82/bbl, with key support defined at 80.26.
  • Recent RUB weakness has seen forward rates moving higher to price in +118bp in the 3x6 FRA, up from a low of +59bp on Friday following Wednesday's weekly CPI print with uncertainty over the CBR's next steps still elevated.
  • Focus is on 72.50 today, to see if the cross can snap the uptrend held since 10 Nov after price action pulled back from the 200dma (73.5411) in yesterday's session.
  • Intraday Sup1: 72.5115, Sup2: 72.2867, Res1: 73.156, Res2: 73.5033
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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