Financial news

Employment in the USA brought down the market. Foreign exchange market review for 7 September 2007

At international foreign exchange market Asian and European sessions for US dollar passed in the ranges against the main currencies. In the frames of decisions on the rates and declarations from the side of ECB and Bank of England the decisive stimulus did not follow and markets switched their attention to the coming report on employment level out of the sector of agriculture in the USA for August, published by 15:30 КТ. Publication of the report itself "cut the ground from under American currency feet" which started to decrease abruptly towards without exclusion main world currencies. The number of work places out of agricultural sector in the USA in August decreased on 4,000 that became the first decrease for the last 4 years. Analytists forecasted work place increased on 110,000. Moreover data for the previous month were reviewed towards decrease by 68,000, from earlier declared 92,000. Such a data gives a basis to market participants to consider that FRS will give to decrease the key rate at the sitting 18 September and some economists forecast just the beginning of set of deceases as a result of which base rate in the USA will be decreased on 100 b.p. by the beginning of the next year.

As a result of downfall American currency reached monthly minimums relating main currencies and after some correction continued to fall down, meeting on the way oppression in the region of key marks.

Euro/dollar tested maximum at 1,3798 and now is traded about 1,3780/85. Pound reached the mark 2,0323 and is at the moment of writing the review in the region of the figure, testing sales about 2,0300. Swiss frank lowered by minimum at the mark 1,1875 and is also struggling for the key mark in the region of the figure 1,19.

Such course of events at the market gives a basis to consider that US dollar will still be traded under the pressure until sitting of Committee on open markets. And only results of the sitting will be able to decrease this pressure or vice versa — to strengthen.

At Ukrainian interbank foreign exchange market at present a slight rally of American currency is observed, caused by increase of demand from the side of some market participants. US dollar quotations during the session increased by 5,012/5,015, from 5,001/5,010 at the opening of the session in the morning. On the previous day the quotations fluctuation was observed in the range 5,00/5,01. Most part of the bargains was concluded today in the range 5,005/5,012, while 5,0005/5,0050 on previous day.

NBU today did not come to the market due to absence of such necessity. We'd like to remind that last time National Bank participated in bid 06 September when it was buying the currency at 5,00/$1.

At DEPOT-market today on the eve of week-end the rates decrease on interbank credits in national currency is observed.

Hryvna "overnight" is quoted by banks in the range 0,4/1,0%, while 0,5/1,25% on previous day. Average weighted rate already by 16:00 КТ decreased on 0,2% against yesterday level by 0,8% annuals. Concluded bargains bulk by 16:00 КТ made up UAH 796 mln., against 1210 mln. according to the results of Thursday bid.

The cost of "weekly" resources also demonstrates a negative dynamics. Price fluctuation on these credits today passes in the range 1,6/2,0, that permitted to decrease average weighted rate on the concluded bargains by 1,8%, from 2,4% according to the results of previous bid. The volume of bid decreased and by 16:00 КТ made up just 54 mln., while 252 mln. according to the results of previous day.

Today the cost of credits for the term "from 22 up to 31 day" was fluctuating today in a wide range 4,5/11,8%, against yesterday 3,5/7,0%.