Financial news

Foreign exchange market review. 18 october, 2007

At Ukrainian interbank foreign exchange market progressive US dollar growth, since Monday, today was strengthened by national currency that was caused by big sales of currency by some market participants.

Bids were opened higher than point 5,05 — about 5,052/5,057-5,060 and some time were at this range. Burst of sale was quick and provoked quotations lowering at the beginning by 5,045/5,050, then by 5,038/5,045. The bids were closed at the large range — 5,020/5,046, that witnesses closure of today need in purchase and about deferred for the next session applications on sale due to low buyers' interest.

Majority of concluded bargains today was at the range 5,048/5,054, at 5,050/5,055 per $1 a day before.

NBU did not participate in bids.

At DEPO-market resources cost remains practically the same with factors absence, able to cause at least the slightest changes.

Quotations fluctuations on hryvnas «overnight» were marked at the range 0,25/1,25, but the main trade range shifted to 0,40/0,75, at 0,30/0,60% during all previous days of week. Insignificant growth is observed in spite of balances growth on banks correspondent accounts. Average weighted rate «overnight» by 17:00 КТ constitutes 0,7%, increased on 0,1% in comparison with previous day. Volume of concluded bargains constituted a little bit more than UAH 1 bln., at UAH 1,91 bln. a day before.

Cost of «weekly» resources, vice versa, decreased. Rates movement was marked at the range 1,0/1,7, at 1,0/2,2% on Wednesday. Average price decreased by 1,5%, from 1,6% a day before. Bids volume increased a little bit and constituted 92 mln. against 71 mln. a day before.

Price on given credits form the term «from 22 to 31 day» fluctuated today about 11%, at trade range 5/6%.

Today at international foreign exchange market at European bids American currency demonstrates weakness relating to the main currencies due to the appearance of next feature of housing sector weakening of the USA.

Additional pressure on US dollar was caused by publication of results of activity of Bank of America for the third quarter which turned out to be lower than forecasts, and initiated fears relating to slowdown of the biggest economy.

US dollar hopes to get at least insignificant support were broken by data release on labor market presented today by report on applications number on receiving unemployment benefits. Report demonstrated growth of new applications on 28 000 by 337 000, when on average was expected the growth just on 4 000. Euro/dollar overcame option barrier at the area 1,4300, and marked new historical maximum 1,4309, however, to continue ascending movement in spite of feet at the area 1,4305/10, it failed.

At present pair is keeping about 1,4290 and keeps to be in demand, besides, analysts note that break higher than resistance in the area 1,4240/80 is positive signal renews a little bit lost potential for the growth to synthetical maximum on 1,4585.

Interest to the sales was noted in the field of 1,4345/60, to purchases — about 1,4220, moreover, the demand can be expected about the region of 1,4240.