Financial news

At DEPO-market, rates move on interbank credits in national currency has a differently oriented character

International foreign exchange market. During all this day, the US dollar exchange rate has been decreasing slowly against European currencies. This downturn was caused by the Fed's statement on the possibility of the US economy tailspin. Expectations of further inflation growth in Eurozone give reverse support to euro against the US dollar. In order not to allow further more rise in prices, the ECB is likely to keep discount rate at previous level. The IMF reduced forecast on British economy increase up to 1,6%. In this connection, the pound sterling continued its decrease against euro.

The GDP growth in Eurozone did not change in comparison with the previous index and amounted to 0,4%.

The number of submitted applications for mortgage loans increased by 5,4% in the USA which characterizes positively the US economy.

Technical levels on main currency pairs as of 17:31 KT:

At Ukrainian interbank  foreign currency market, "lateral" movement can be observed which has been already for several days within the range of 4,98/5,01 where each rise of the US dollar up to the level of 5,01 is accompanied with subsequent rollback to the level of 4,99 per $1 and even lower.

Soon after the opening of trading, the US dollar exchange rate began to decrease having reached its low at 4,985/4,995 level, but this level proved to be exceedingly understated and new purchasers entry into the market caused certain correction of the exchange rate which amounted by the end of the day to 4,99/5,00 per $1, with 5,003/5,008 a day earlier.

The majority of transactions were concluded today by market participants within the range of 4,995/5,000, with 5,004/5,0075 per $1 on Tuesday.  The US dollar is likely to remain tomorrow within the range of 4,985/5,000, as limited offer of hryvnia resources can provoke dollar selling against national currency.

At DEPO-market, rates move on interbank credits in national currency has a differently oriented character depending on credit period and factors indicating considerable modification of market conjuncture in the nearest future.

Rates "overnight" in UAH today fluctuated all the day within relatively narrow range — 10/12%, with 9,0/12,0% on Tuesday. At this, average weighted price of concluded transactions rose a little and by 17:00 KT amounted to 10,8%, with 10,5% according to previous day results. Concluded transactions volume by this time amounted to UAH 2,77 billion, with UAH 3,58 billion according to previous day results.

Rates on credits for a period "from 2 to 7 days" decreased insignificantly, though the range of today fluctuations looks like 11,0/16,0%, with 12,0/16,0% yesterday. Average weighted price at this decreased by 1% — up to 12,9% p.a. Volumes of transactions being concluded keep falling down and by 17:00 KT they amounted to UAH 183 million, with 332 million on Tuesday at the end of the day.

Rates on credits for a period "from 22 to 31 days" on really concluded transactions amount today to 17% with the range of 12,0/20,0% a day earlier.

Short term credits value is likely to decrease insignificantly at bids on Thursday, which can be connected with intermediate report date.

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

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