Snaps
19 December 2018

Briefing Romania

More of the same for EUR/RON

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON delivered more of the same yesterday, inching well below 4.6500 during the day only to close around 4.6490, just below the opening level. With bond inflows apparently on a downside trend in recent days with the yield moves, we could see mild upside pressure on the pair in the coming days.

Government bonds

A calm session for ROMGBs, with the curve broadly unchanged compared to the previous day. All eyes will be on Fed decision today which will likely dictate market mood for the upcoming period.

Money Market

Funding rates remain well anchored around the deposit facility. Tenors covering the beginning of the next reserve period are trading somewhere below 3.00%, suggesting that banks are not overly preoccupied with liquidity issues in the near term.

 - Source: Rueters, ING estimates
Source: Rueters, ING estimates

 - Source: Reuters, Bloomberg, ING
Source: Reuters, Bloomberg, ING