"If you don't know where you are going, every road will get you nowhere." - Henry Kissinger

FOREX MARKET
The parliament approved yesterday the date of the referendum for May 19th, when citizens of Romania would be consulted regarding the suspension of president Traian Basescu.
On April 24th, the single currency was quoted at 3.3360 level at the opening of the forex session, similar to previous day's closing. Within less than one hour, the purchases of clients took the pair up to 3.3400 zone, which proved once more to be a strong resistance zone. It seems that there are important selling orders at the 3.3400 level, as it held on for only several minutes. Afterwards, sustained selling gradually pushed the pair as low as 3.3290 level in the second half of domestic session. The forex market closed in the 3.3330 zone.
On Wednesday, the European currency was bided at 3.3340 level, but gradually the pair fell until 3.3270 level, as clients sold the euro for their end-month budget payments. For the rest of trading, we expect that the pair would be quoted in the 3.3200-3.3300 zone, as clients seem to have left aside political turmoil in favour of their everyday business activities.
The data released on Tuesday added more pressure over the greenback, as the housing and consumer confidence figures pointed out a slowing of US economic growth. As a result, investors opened new long positions on the euro, which hit another two-year peak against the dollar, at 3.3655 level in early European trading. Today, analysts would be eyeing Germany's Ifo business climate index, while later they would focus over US durable good orders, new home sales and Fed's beige book. The market seems set on selling the dollar, therefore even if the data will prove better than expected; the effect is likely to be limited.

MONEY MARKET
On Tuesday, the ON maturities recovered to the proximity of the key rate, respectively to 7.5/8.5% bids/asks, as a new reserve period has started. In late trading, the overnight interest rates rose to 8/10% zone, as commercial banks needed liquidity for their clients budget payments. On April 25th, ON rates were traded for 9/10% bids/asks at the opening of money market, but shortly after interest rates soared until 13/14% zone, as some commercial banks had probably underestimated the liquidity needs of their clients.