Financial news

US dollar price moves up after oil futures drop

International foreign exchange market . After a 2-day drop US dollar has stabilized today. During European session US dollar has been decreasing, during the American one it has been increasing.

Unemployment rate data has been published in Great Britain in 11:30 a.m. Number of applications for unemployment allowance in Great Britain has increased 15,5 thousand. After half an hour it revealed that consumer price index in EU during June has risen by 0,4% in per month calculation and by 4,0% in per year calculation. Inflation growth has hit the record according to per year calculation.

US dollar has risen not only because of negative trends in European states with highly developed economies, but also because of oil futures price drop. On Wednesday they were traded for less than US $140 per barrel.

The US consumer price index in June rose by 1,1% in per month calculation, and the net capital outflow from the US economy during May amounted to $2,5 billion.

According to these macroeconomic data, the US and European countries economies have considerably weakened, and it seems to be hard to presume now with fundamental data, how the main currencies trends will develop further on.

Technical levels of the main currency pairs at 17:04 КТ:

On Thursday, July 17, world currency exchange rates can be affected most by the following macroeconomic data ( Kiev time):

15:30 — USA — volume of new dwelling construction works beginning;

16:00 — USA — number of applications for unemployment allowance.

At the Ukrainian interbank foreign exchange market the situation is seen to come back to its trends after the NBU intervened the market on Tuesday and withdrew the excessive dollar offer. The NBU bought out only a part of currency bid, the US dollar quotations decreased yesterday before the trade was closed. And today, just after trade opening, dollar has shown negative dynamics.

Trade has opened at the rates of 4,62/4,65 and continued the negative trend. Thus, dollar quotations have moved down to 4,61/4,63 level. Then a short term growth takes place, caused by simultaneous appearance of numerous buyers, and the rate moves up to 4,625/4,635. However, soon after this US dollar keeps the trend of latest sessions and goes down again to 4,60/4,62 by closure, compared to 4,62/4,66 the day before.

The majority of transactions has been concluded today at the rate of 4,605/4,625, compared to 4,61/4,64 per $1 the day before. The NBU has not participated today.

The situation at DEPO-market remains the same, as big остатки of commercial banks at correspondent accounts of the NBU continue pressing upon interest rates on interbank loans which have remained invariable during more than one week already.

Overnight rates in UAH remain within the limits of 1,0/6,0% per year, and the average weighted price is losing 0,1-0,2% every day, totaling 2,9% by 17:00 КТ , compared to 2,9% the day before. The volume of transactions by 17:00 КТ amounted to 2,48 billion, compared to 3,61 billion according to Tuesday's trading results.

Rates on credits for a period “from 2 to 7 days” stay today less variable than yesterday — 4,5/11,0% and 3,0/13,0% respectively. Weighted average price on actually concluded transactions has dropped down to 5,9% from 7,2% yesterday. However, the decrease in interest rates has not boosted the volume of issued loans, which amounted to only 220 million, compared to 272 million on Tuesday.

Rates on credits for a period “from 22 to 31 days” are today within the range of 10,0/18,0%, against 10,0/16,0% at previous day's trading session.

Comments by S.N.KRAMAROVA, Head of the Treasury of PRAVEX-BANK.

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