EUR/USD: RUB intervention main factor overnight

The Russian central bank sold over $10 billion of USD/RUB yesterday, as it sought to halt a run on Russian assets after Putin’s intervention in Crimea. A large portion of these USD were then bought back, primarily against the EUR but also against the Yen, in order to keep FX reserve ratios constant.

This kept a solid cap on EUR/USD throughout the European session and also provided plenty of support on dips for USD/JPY.

  1. There are plenty of opinions on ukraine, i claim no huge expertise apart been from the region in question. Overal i find it hillarious when US is trying to put economic pressure. First of all US never ended cold war and one consequence is that bilateral trade is close to 0 and there are more US corporations in Russia than Russians in US. Thus any sanctions would fire on US more. The only place that could put pressure is Germany, but then again bilateral trade looks like mercedes in exchange for nat gas. And in my opinion Russia can live without mersedeses, I am not sure about Europe without gas….

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