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USD/RUB Treads Water Above 71.00, Oil Bulls Eye Inventory Data

RUSSIA
  • USD/RUB trades +0.04% higher this morning, broadly in line with mixed to weaker risk sentiment filtering through from the APAC session.
  • The cross held mostly flat throughout yesterday's session, despite decent gains in oil markets (+1.09%) to remain above 71.00 support.
  • Oil bulls will look to API inventory data this afternoon for more clues on demand/supply dynamics after 3 weeks of consecutive inventory builds, but also keep an eye out for comments from Biden looking to address rising gasoline prices.
  • Russia continues to turn the screws on EU gas supplies, only returning a portion of the volumes Putin promised by 8 Nov – with gas stockpiles running low across the region ahead of what is expected to be a cold EU winter.
  • Another factor worth monitoring is potential EU sanctions on Belarus and Russia being dragged into a proxy argument with the EU over the wave of migrants pressuring Poland's borders.
  • Today's focus will be on US PPI, followed by CPI tomorrow for clues on pricing dynamics and the Fed's next steps – which may drive some USD-side volatility in the coming days.
  • USD/RUB is currently treading water above 71.00 - awaiting fresh catalysts to take the next leg lower towards 70.00-70.50.
  • Intraday Sup1: 71.0687, Sup2: 70.7527, Res1: 71.557, Res2: 71.8659
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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