Briefing Romania

Yesterday we saw increased turnover on EUR/RON again with not much impact on the FX rate. The pair remains remarkably stable in the 4.7300-4.7400 range.

On the fixed income side, the market has come to a standstill ahead of today’s Federal Reserve rate decision. As we have a high bar for hawkish surprises from the Fed, we could see some slightly better buying interest for Romanian government bonds.

The money market curve continues to slowly steepen as paying interest in the longer tenors still prevails. The front end looks to be heading towards the 1.50% deposit facility a bit earlier than expected.