CREDIT EUROPE DAILY
"A closed mind is like a closed book; just a block of wood." - Chinese proverb
FOREX MARKET
On June 25th, the National Bank of Romania reduced the monetary policy rate by 25 bps to 7.0%, as widely
expected by analysts. NBR prefers to use the monetary policy rate as an instrument to curb the sudden
appreciation of RON against the hard currencies, rather than intervening directly in the forex market, unless NBR
becomes deeply concerned about RON,s appreciation, as the governor had reiterated lately in an interview.
Although the Central Bank diminished the key rate by 175 bps since the beginning of 2007, the monetary policy
maintained restrictive, as core inflation, adjusted for the effects of excise taxes on tobacco and alcohol,
continued to drop to 2.7% in May from 3.0% in December 2006.
On Tuesday, the single currency was bided at 3.1750 level at the opening of the domestic forex market and tested for
3.1820 zone which held on yesterday as well. RON found support in the high interest rates practiced on the Romanian
money market, decoupling from its regional peers which depreciated vs. euro. Therefore, the EUR/RON reversed its
move to the downside and fell until 3.1700 area.
On June 27th, the Romanian forex market opened in the 3.1700 zone, climbed until 3.1760 level in early trading.
Afterwards, the domestic currency rallied against the euro until 3.1630 level around noon time, as it is sustained by the
high yields on the money market, which keep on validating the carry trades.
The EUR/USD remained rangebound in the 1.3440-1.3470 zone on Tuesday, after the US economic releases came out
in line with market香s expectations. However, the greenback weakened vs. the yen, on back of the worries about the US
subprime mortgage sector and a warning against the one-way bets by Japan香s finance minister. On June 27th, the market
players will be focusing over the US Durable Goods orders for May and Fed香s two-days FOMC meeting.
MONEY MARKET
On Tuesday, the overnight maturities are quoted for 10/13% bids/asks, as the frenzy for the domestic currency
continued. On June 27th, the money market opened in the 12/16% zone and held on within this zone until NBR
announced REPO auction at the fixed rate of 7.00%, when ON interest rates fell to 7/13% levels.
|
Domestic Markets Foreign Exchange Rates |
||||
|
NBR |
Daily Change |
Year to Date (%) |
Annualized |
|
|
EUR/RON |
3.1816 |
0.0034 |
-5.92% |
-4.02% |
|
USD/RON |
2.3661 |
0.0048 |
-7.85% |
-5.35% |
|
GBP/RON |
4.7257 |
0.0036 |
-6.72% |
-4.57% |
|
CHF/RON |
1.9239 |
0.0005 |
-8.95% |
-6.11% |
|
Interbank Market Interest Rates (%) |
||||
|
ON |
1M |
6M |
12M |
|
|
BUBID |
11.25% |
7.16% |
6.66% |
6.58% |
|
BUBOR |
15.81% |
8.63% |
7.52% |
7.54% |
|
EURIBOR |
4.08% |
4.11% |
4.29% |
4.51% |
|
LIBOR(USD) |
5.30% |
5.32% |
5.37% |
5.39% |
|
Romanian Equities |
||
|
Last |
Daily (%) |
|
|
BET |
9,456.18 |
2.85% |
|
BET-C |
6,436.35 |
2.32% |
|
BET-FI |
83,366.60 |
0.52% |
|
RASDAQ C |
5,028.91 |
0.75% |
|
Romanian Eurobonds |
||||
|
Maturity |
Cupon |
Price |
Daily (%) |
Yield |
|
27-Jun-08 |
10.63% |
105.61 |
-0.03% |
4.67 |
|
02-Jul-10 |
5.75% |
102.51 |
0.07% |
4.82 |
|
06-May-12 |
6.50% |
115.45 |
0.13% |
4.84 |
|
22-Jun-15 |
4.125% |
92.51 |
0.15% |
5.30 |
|
Romanian State Government Bonds and T-Bills |
||||
|
Latest issues |
Auction Date |
Issue Date |
Maturity Date |
Avg. Yield |
|
RO0510DBNI36 |
08 August 2005 |
10 August 2005 |
10 August 2010 |
7.48% |
|
RO0515DBN143 |
15 August 2005 |
17 August 2005 |
17 August 2015 |
7.49% |
|
RO0508DBN155 |
15 September 2005 |
19 September 2005 |
19 September 2008 |
7.60% |
|
International Equities |
||||
|
Last |
Daily Change |
Year Low |
Year High |
|
|
S&P 500 |
1,318.03 |
-0.32% |
1,374.12 |
1,539.18 |
|
DJI |
13,337.66 |
-0.11% |
13,352.05 |
13,635.42 |
|
NASDAQ |
2,574.16 |
-0.11% |
2,525.29 |
2,626.76 |
|
XETRA DAX |
7,860.52 |
-0.88% |
7,590.50 |
8,090.49 |
|
NIKKEI 225 |
17,849.28 |
-1.20% |
15,725.94 |
18,240.30 |
|
International Market Exchange Rates |
||
|
CURRENCY |
Latest |
Daily Change |
|
EUR/USD |
1.3427 |
-0.26% |
|
GBP/USD |
1.9945 |
-0.18% |
|
USD/CHF |
1.2288 |
0.17% |
|
USD/SEK |
6.9075 |
0.54% |
|
USD/JPY |
122.67 |
-0.61% |
|
EUR/USD trading rate |
|||
|
Support |
Resistance |
||
|
Sup. 1 |
1.3400 |
Res. 1 |
1.3470 |
|
Sup. 2 |
1.3370 |
Res. 2 |
1.3490 |
|
Sup. 3 |
1.3330 |
Res. 3 |
1.3510 |
|
Sup. 4 |
1.3300 |
Res. 4 |
1.3530 |
|
Commodities |
||
|
Latest |
Daily (%) |
|
|
GOLD |
640.75 |
-1.45% |
|
SILVER |
12.23 |
-4.75% |
|
OIL (BRENT) |
72.45 |
0.21% |
|
Interest Rates for Time Deposits of Credit Europe Bank |
|||||||
|
1WK |
1M |
3M |
6M |
9M |
12M |
Minimum Amount |
|
|
USD |
0.50% |
4.25% |
4.50% |
4.75% |
5.00% |
5.50% |
USD 1,000 |
|
EUR |
0.50% |
3.75% |
4.00% |
4.25% |
4.25% |
4.75% |
EUR 1,000 |
|
RON |
3.00% |
7.25% |
7.25% |
7.50% |
7.50% |
8.00% |
RON 2,000 |
Released by Credit Europe Bank Romania S.A.,3rd Nerva Traian Street, Bucharest. For further information please contact Melania Hancila -Treasury & Capital Markets Division, Phone 308 52 66, Fax 318 87 74.
Disclaimer: This report does not represent an investment advice and should not be construed as a recommendation to invest in any kind of investment vehicle. The information in the report is based on sources available to the public and believed to be reliable, and there is no claim that is accurate or complete. Thereafter this information can be changed without notice.
Publicat de Credit Europe Bank Romania S.A., Nerva Traian nr.3, Bucuresti. Pentru mai multe informatitii si intrebari, va rugam contactati Departamentul Trezorerie si Piete de capital - Melania Hancila, Telefon: 308 52 66, Fax: 318 87 74.
Acest buletin are scop informativ si nu reprezintaun sfat sau recomandare de a investi in nici un tip de instrument. Informatiile care stau la baza acestui raport zilnic au o sursa publica, considerata sigura insa, nu sustinem ca este completa. Astfel ca informatiile publicate mai sus se pot schimba fara un anunt prealabil.