Russian assets are taking a hit today following reports saying that the United States is readying sanctions on the country for election interference and hacker activity. Media reports say that 12 Russian officials and 20 entities will be targeted with sanctions. While these can be seen as a "typical" sanction targets, Reuters report hinted that actions may be more significant. Namely, Reuters reported that the United States may impose restrictions on purchases of new Russian debt. Such an action would impact Russia's ability to finance on the markets.
Russian index RTS (RUS50) launched today's cash trading with a 2% bearish price gap but has recovered slightly and now trades around 1.5% lower on the day. Ruble is dropping hard against EUR and USD. Price of 10-year Russian government bonds dropped 1%.
EURRUB managed to drop back below the upper limit of the downward channel earlier this week. However, today's news on possible sanctions on Russia has pushed the pair significantly higher. EURRUB is once again testing the resistance zone at 92.35. Source: xStation5
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