Financial news

USD Supply and demand are relatively balanced without the NBU interference

International foreign exchange market. On Thursday there were published several considerable macroeconomic indicators. Among them there was decision of England Bank and European Central Bank on interest rates. Both banks saved discount rates at the previous level: in Great Britain — 5%, in Europe — 4%. Comments were made only by Head of European Central Bank, Jean Claude Trichet. Bank of England did not give comments to its actions. Trichet said that European Central Bank thoroughly considers possibility of discount rate increase in future "to restrain inflation pressure". However it does not give any guaranties that rate will be increased. Market gave immediate reactions to such comments — EUR, CHF and GBP sharply increased.

Orders volume in manufacturing sector of Germany in April 2008 decreased to 1,8% in comparison with March of the current year. Analysts forecasted 0,5% growth.

In medium term perspective USD kept growing at the world space relating its European currencies-competitors, as statistic data on American economics are quite better than on European one.

Technical levels on main currency pairs at 17:48 КТ:

At Ukrainian inter-bank foreign exchange market USD demand and supply are quite balanced without the NBU intervention. Market equilibrium is shown by the fact that today's rates dynamics are at the same range as a day before, besides USD volatility is relatively low. During today's bids USD rate fluctuated within 4,74/4,78 per $1, in comparison with 4,74/4,80 a day before. Besides majority of bargains is concluded by market participants within 4,755/4,77, against 4,75/4,78 per $1 at bids on Wednesday.

At DEPO-market rates on inter-bank credits keep decreasing, renewing days-long minimum levels every day.

"Overnight" in UAH by the end of the day decreased to 5,0/8,0%, from 10,0/14,0% in the first half of a day and 8,0/16,0% at bids on Wednesday. Average weighted price on actually concluded bargains at 17:00 КТ decreased to 10,4%, from 13,4% in accordance with results of Wednesday. Bargains volume at 17:00 КТ slightly decreased in comparison with previous day — to 2,24 b, from 2,49 b. At the end of a day on Wednesday volume of registered bargains constituted 3,56 b.

Rates on credits for the term "from 2 to 7 days" decreased today to 10,0/16,5%, from 12,0/18,0% a day before. Average weighted price on actually performed bargains decreased to 11,9%, having lost 4,5% p.a. Volumes of concluded bargains decreased to 144 m, from 201 m on a previous day.

Rates on credits for the term "from 22 to 31 days" are today within 16,0/20,0%, that slightly higher than trade range 14,9/20,0% p.a. of yesterday.

Rates on USD for "overnight" constituted today 3,0/6,0%, on EUR — 4,0/5,0%.

Having other similar conditions before week-ends there is probability of UAH resources stronger decrease.

Comments by S.N. KRAMAROVA, Head of Treasury.

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