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USD/RUB Stalls at 74.00 as OPEC+ Compromise Tempers Oil Gains

RUSSIA
  • USD/RUB gaps higher at the open on the back of early weakness in oil markets, with Brent trading -1.20% having slipped below $74/bbl.
  • Brent peaked at $76.72 yesterday, before falling -2% after OPEC+ members reached a compromise that should see output rise in the coming months – more than offsetting a draw on EIA inventories.
  • This saw USD/RUB stall out around 74.00 support and tempered broad-based selling pressure on the BBDXY.
  • Positive climate talks between John Kerry and Putin seem to have thawed US-Russia relations somewhat, but have not really translated into a great degree of RUB optimism.
  • Cybersecurity remains a more contentious point, with markets unsure about what to expect from tomorrow's meeting.
  • However, Putin's prior willingness to cooperate on the matter may pave the way for a tentatively constructive outcome.
  • Price action today is hovering below the 100dma at 74.250, with RUB bulls looking for a close below this level to gauge whether we can return towards 73.3362 next week as hawkish expectations for the CBR bolster RUB demand.
  • Intraday Sup1: 73.9433, Sup2: 73.6584, Res1: 74.4614, Res2: 74.8061
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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