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USD/RUB Threatens Upper Threshold of Weekly Range, Markets Eye Lukashenko Talks

RUSSIA
  • USD/RUB opens higher in line with a firmer greenback and slight hesitancy from Brent around the $70 handle.
  • USD/RUB price action is now pressuring the upper threshold of the weekly range (73.60-73.20).
  • However, RUB sentiment remains strong at these levels with the sell side looking to fade rallies in USD/RUB into the next (presumably hawkish) CBR meeting.
  • US & Moscow pulling out of the Open Skies Treaty is a slight dampener on relations, which have deteriorated somewhat in the last two weeks - as evidenced by a slight uptick in risk premia this week.
  • Nevertheless, both sides seem intent on easing tensions in the Biden-Putin meeting, despite the Kremlin downplaying the prospect of material progress.
  • Putin-Lukashenko meeting will be eyed closely for headline risks today.
  • Moscow has provided muted support for Belarus this time around, with the Kremlin showing signs of fatigued Lukasheko backing amid a push for better US-Russia ties.
  • Intraday Sup1: 73.4728, Sup2: 73.2003, Res1: 73.7436, Res2: 73.9706
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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