Financial news

Pound sterling restarted to move slowly upward

International foreign exchange market. Today trading was not so active as it had been at the end of the last week. At the beginning of the day, the US dollar tried to regain positions lost on Friday.

Producer price index in Great Britain increased in June of the current year by 0.9% in monthly calculation and by 10.0% in annual one (prognosis: 1.2 — in monthly calculation, 9.8 — in annual). These data impacted negatively the exchange rate of British currency but an hour later pound sterling restarted to move slowly upward.

Data on industrial production in the Eurozone also had a negative impact on the exchange rate of single European currency. Production rate decreased by 0.6% in monthly calculation and by 1.9% in annual one.

According to analysts, the US dollar rate increase is also connected with the publication of news about the US authorities' intention to provide financial support to the largest US mortgage institutions — Fannie Mae и Freddie Mac.

Technical levels on main currency pairs as of 16:04 КТ:

On Tuesday, 15^th of July, the following macroeconomic data may have critical impact on the world exchange rates (Kyiv time):

11.30 — Great Britain — Producer price index; retail price index;

12.00 — Germany — ZEW Institute Index of sentiment in economic sphere;

12.00  — the EU — ZEW Institute Index of sentiment in economic sphere;

15.30 — the USA — Producer price index; Retail trade volume changes;

18.00 — the USA — Statement by Ben Bernanke, head of the US Fed on the economy and policy of the Fed.

At the Ukrainian interbank foreign exchange market, where demand and supply for the USD remain well balanced, the US currency once more lost a bit its positions against its Ukrainian counterpart, having decreased to the level of 4.58/4.60 per $1 in the course of the session. Trading range within which transactions are made today looks like 4.58/4.63, with 4.60/4.65 on Friday. The US dollar gradual weakening is stimulated by considerable currency inflows in the country in form of foreign investments which cause from time to time considerable drop in the US currency against the hryvnia and force the NBU to buy the currency in order to avoid sharp strengthening of the national currency.

The majority of deals were concluded today by market participants at 4.595/4.615, with 4.615/4.63 per $1 a day earlier.

At the DEPO-market,  situation is still unchanged. UAH liquidity excess continues to impact interest rates at interbank credits allowing them to remain within 3% p.a.

Overnight credits rates in UAH fluctuate today within the range of 1.0/6.0% p.a., with 1.0/4.0% a day earlier, but weighted average price on actually concluded transactions decreased at this to 3.0% from 3.1% a day earlier. Volume of transactions by 17:00 KT amounted to 2.46 bn with 3.27 bn according to session results on Friday.

Rates on credits for a period "from 2 to 7 days" increased a little today and remain in a large range — 2.0/14.0% with 5.0/10.2% a day earlier. Weighted average price on actually concluded transactions increased at this to 10.7% from 7.1% yesterday. Rates increase was accompanied by issued credits number decrease — to 75 m from 130 m on Friday.

Rates on credits for a period "from 22 to 31 days" are today within 13.0/18.0% which practically corresponds to Friday's level — 14.0/18.0% p.a.

Comments by S.N. KRAMAROVA, Head of the Treasury, PRAVEX-BANK

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