Financial news

Fluctuation of rates on depository market

International foreign exchange market. In the morning the USD currency was traded sluggishly, though at the opening of American session the USD currency started to grow.

During the European trading session, strong macroeconomic rates were not published. US dollar was traded at pair Dollar/Euro in narrow corridor — 35-40 points, GBP and Swiss franc grew insignificantly.

Reports on USA economics and market situation which took place in NY and Pennsylvania states became most important events during the American session. C. Plosser, Head of Federal Reserve Bank of Philadelphia declared that in case of inflation speed-up, Federal Reserve System can start a whole series of interest rates rise in order to strengthen the USA economic growth. Market has instantly reacted to these declarations by USD currency growth against other international currency.

Technical levels on basic currency pairs by17:09 КТ:

On Wednesday, July 23, following macroeconomic data can influence world exchange rates (KT):

11:30 — Great Britain — Publication of last session minutes of the Bank of England    

12:00 — ЕU — Quantity of new industrial orders

17:35 — USA — Data on crude oil stocks and petroleum products

On Ukrainian interbank foreign exchange market.   For the first time in history the NBU has announced its readiness for Euro offer surplus purchase, setting the purchase rate at range of 7, 3739. Earlier the NBU purchased Euro on interbank market but the rate of interventions always remained closed for the market. This action of regulator could be interpreted as a necessity to back up the "falling" dollar by increasing in the mean time the Euro share in its reserves. As US dollar constitutes the basic part of market offer today, the NBU didn't operate any monetary interventions.  In US dollars terms, hence market / established official the NBU USD/ Euro rate for today, the intervention rate is fixed at UAH 4, 63/4, 65 /$1, what is significantly less than during last NBU intervention at the level 4, 75/$1.

As the market actors didn't have a 100% certainty in the NBU interventions accomplishment till the moment of its beginning then today bid events also developed on common scenario when the US dollar after short time fluctuations in a narrow band — today 4, 59/4,61 — lowered, by fixing the new through for the last days.  At the moment of session closing US dollar rate against UAH constituted 4, 58/4,605, being 4,580/4,595 per $1 the day before.

Major part of deals was arranged by market participants at the rate of 4, 59-4,595, being 4,585/4, 60 per $1 the day before.

On DEPO-market rates movement is characterized rather as multiple-valued, on the one part, as the commercial banks balances are continuously decreasing for an insignificant sum, including at the expense of the NBU depository certificates sale, from another part, daily exists the opportunity of their rise if the NBU reopens the interventions and redemption of its last depositary certificates. This complicates forecasts of future rates behavior lead to large trading ranges formation.  

Dynamics of "overnight" rates in UAH is marked today at range 1, 5/6, 0%. Average weighted price by 17:00 КТ grew up to 3, 9%, from 3, 7% on Monday's results. Volume of deals by 17:00 КТ amounted to 2, 98 billions in comparison with 4, 67 billions on Monday's session results.  

Crediting rates "from 2 till 7 days" are established at range of 2, 4/13, 0%, being 7, 0/10, 0% the day before. Average weighted price for actual agreed deals decreased from yesterday's 7, 8% to 6, 5%. Volumes of granted credits grew up to 303 billions from yesterday's 190 billions.

Crediting rates "from 22 till 31 days" are established today at range of 12, 0/13, 0%, being 12, 5/18, 0% on Monday's bid.

Comments by S.N. Kramarova, PRAVEX-BANK Treasury Director 

[You can subscribe for Banks news]