Financial news

Main currency pairs were traded within a narrow price range.

International currency market. Main currency pairs were traded within a narrow price range today. During the European trade session US dollar has been dropping in relation to the messages of ECB on the inflation combating. Messages on some big investment funds' looking for an opportunity to decrease dependence on American dollar have appeared as well.

Among macroeconomic news, only those relating to the state of US economics is worth mentioning. The number of requests for maintenance on unemployment has grown up to 366 thousand during the last week, while 380 thousand has been expected. The number of new houses building has grown by 9,1%. Such events supported American currency, but still its growth was not significant.

Technical levels of main currency pairs as for 17:04 KT:

As for July 18, Friday, the most significant effect on global currency rates can be caused by further macroeconomic data (KT):

9:00 — Germany — Production prices indexes;

11:30 — Great Britain — State's necessity in borrowed money; Movements of the volume of monetary aggregate M4.

Today's trade at Ukrainian interbanking currency market is characterized by outstanding balance, as the rate dynamics for the whole day has not crossed the range of 3 kop. — 4,595/4,625 per $1. Trade was opened at the point of 4,61/4,625 and then the rate has gradually been dropping to 4,60/4,615. Still at the point of 4,595-4,60 US dollar was sufficiently supported by purchases on clients' demands  as well as by banking purchases. 

Due to this, the exchange rate has grown somewhat and comprised 4,605/4,625. After the active trade closure, some of the market actors made an attempt to work with clients' demands within the stated exchange rates limits. This is the reason why dollar purchases comprised 4,59-4,605, and the sales — 4,63-4,65.

The majority of the covenants were made within the rate 4,60/4,61 today, while the rate was 4,605/5,625 per $1 as for yesterday. The National Bank of Ukraine did not participate in the trade today.

Despite the fact, that the rests of the COM banks at NBU are continuously reducing, the rates are dropping at the DEPO-market. This period of reduce for the borrowed money prices is used by many market actors for attracting cheaper loans limited to 1 month period. Meantime the NBU is continuously "binding" over liquidity by means of deposit certificates sale, having increased the period of their action up to 1-4 months.

The "overnight" rates are now within the range of 1,0/4,0% in UAH equivalence, while the annuals comprised 1,0/6,0% as for the previous day, average price has dropped by 0,2% — 2,7%. The volume of covenants constituted 2,72 billion at 17:00 KT, while according to the results of the Wednesday session, it was 3,46 billion.

Rates for the "from 2 to 7 days" loan are within the range of 4,5/15,0%, while they constituted 4,5/11,0% the previous day. Average price for actually concluded covenants dropped to 6,1% to 6,6% yesterday. The volume of issued loans increased up to 302 million from 267 million as for the previous day.

Rates for "from 22 to 31 days" loans are within the range of 12,5/15,0%, comparing with the Wednesday session figure, which comprised 10,0/18,0%. 

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

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