Financial news

USD started strengthening while European session opening

International foreign exchange market. While European session opening US dollar started to strengthen slowly due to the fact that today within many countries of Europe which economics do not have key influence on economics of European countries, there were published the data on the level of industrial production. One of determining factors of USD increase against main world competitors — oil futures prices decrease at exchanges. The decision of Bank of England on discount rate level drew special attention; however as most of analysts expected, the rate remained at the previous level — in 5%. Bank of England did not make any comments that is why, rate of British pound practically had no reaction to this event.

An interesting opinion of World Bank economists as regards inflation is that key reason for this is biofuel production increasing. Experts stated that more than half of inflationary growth at the world level is connected with biofuel production that naturally causes negative influence on world economics. It is necessary to note that according to OPEC report there will be slow decrease of rates of oil consumption in the world when the production keeps increasing. OPEC specialists presuppose that in 2009, "oil pressure" on consumer considerably decreased.

Technical levels on the main pairs at 17:08 КТ:

At Ukrainian interbank foreign exchange market dollar offer overabundance made rate of American currency fall lower than 4,60/$1, as a result the real bargain started to be concluded within 4,57/4,59, at that time when opening of session was started from the mark 4,58/4,62.

But buyers' gladness was not so long as soon the NBU announced, for the second time of the week, readiness to buy US dollars increasing rate of interventions by 4,74/$1, from 4,72/$1 on Monday. Immediately after publication of this announcement USD quotations increased up to 4,62/4,72, but later "returned" by 4,60/4,65. Approximately an hour before finishing of trade session the National Bank entered the market and bought out excess of USD offer with declared rate having made preconditions for USD rate increase during tomorrow's session.

Majority of bargains was concluded today by market participants with the rate 4,58/4,64, with 4,60/4,61 per $1 a day before.

At DEPO-market, where there is surplus of UAH liquidity, credit rates slowly decrease in spite of active performance by the National Bank of events on liquidity linking. On the other side, today the NBU performed currency interventions again that will increase market liquidity in national currency and will cause further "collapse" of credit rates. Before holidays it can aggravate situation.

"Overnight" rates in UAH fluctuate today within 2,0/9,0%, with 2,0/10,0% a day before, and average weighted price on actually performed bargains is near yesterday's level and makes up 4,6%, with 4,4% at the end of Wednesday. Volume of bargains at 17:00 КТ decreased by 2,36 bn, from 3,33 b.

Credit rates for the term "from 2 to 7 days" today enlarged range of fluctuation — by 6,0/14,4% from 6,6/11,3% a day before. Average weighted price on actually performed bargains increased up to 10,6%, from 9,8% yesterday. Volume of concluded operations decreased again and made up 81,5 m, with 146 m on Wednesday.

Credit rates for the term "from 22 to 31 days" are today about 17%, with trade range in 16,0/18,0% on a previous day.

Nevertheless, the interventions of the NBU caused outflow of currency liquidity from market, as a result "overnight" in USD increased up to 4,0/6,0%, from 3,0/5,0% on Wednesday.

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