May 10, 2022 05:51 GMT
- USD/RUB BGN trades +0.14% higher this morning, treading water a fraction below the 70 handle.
- The cross rose for a second consecutive session yesterday, climbing 2.24% following Putin’s Victory Day speech – which mostly fell short of analyst expectations for an escalation or some form of revised direction/strategy.
- The primary takeaway was that the Donbas remains Russia’s first objective and may lead to a more protracted regional conflict.
- Beyond that, Putin justified his actions with assertions that the West, Ukraine and neo-Nazis were threatening Russian territories from all sides, but failed to issue any threats against the West or any major escalations.
- USD/RUB seems to have found some support around 65.00, and markets will be keeping an eye on yesterday’s highs just above 70.00 for a continuation towards 73.50 & 75.00 or retracement lower to 66.80 & 65.00 below.
- Brent fell sharply yesterday and is now trading around the $105/bbl mark.
- USD price action will be the major markets driver for the remainder of the week as we receive CPI, PPI & economic activity data throughout the week.