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USD/RUB Retests its 200dma, Geopolitical Risks Simmer

RUSSIA
  • USD/RUB trades -0.53% lower this morning on the back of early selling pressure on the BBDXY and yesterday’s gains in oil markets.
  • Geopolitical tensions continue to simmer, but US conditions for Biden-Putin talks have become more onerous – asking for a de-escalation before any commitment, which seems unlikely.
  • Russia squeezing Yamal gas supplies ahead of a cold snap, however, is another factor adding pressure to the situation.
  • Here, although NATO have pointed to meetings with Russia in Early Jan, the situation is far from de-escalating – but also isn’t on the brink of boiling over.
  • For now, we muddle on with the sabre-rattling. USD/RUB continues to occupy the 73.36-74.40 range, with global risk conditions driving price action.
  • PPI & Weekly CPI data will be monitored for clues on the CBR’s last potential hike in Feb, with analysts split over the impact of more positive base effects in Dec & Feb.
  • Intraday Sup1: 73.5033, Sup2: 73.3616, Res1: 73.925, Sup2: 74.0639
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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