USDRUB keeps its bid as shorts head for the door
USDRUB is one of the standout movers today as shorts head for the exits. There’s a lot of market eyes on the 67 area, so if you’re trading it, that’s somewhere to watch.
What’s adding to the squeeze is the fact that hedging is bcoming increasingly more expensive (1 week ATM vols have jumped). If folks find it too costly to hedge thier positions, the only option is to cut them back.
Daily vols are even more jumpy and are up around 28 from around 7 at the start of the month.
The US/UK/Russia spat is bubbling away but the US/Russia clash over the latest problems in Syria are adding to that too. With a lot of military hardware in the area, it’s been an accident waiting to happen for a while.
We may have had the trade war news dumbed down a bit by China but the Russian situation shows no signs of abating and is yet another issue keeping risk trades on their toes.