Briefing Romania

The EUR/RON traded to the high side of our indicated 4.7150-4.7250 range on above average turnover. For today we could see a test at 4.7300 but it could still be a bit too early for the pair to depart the 4.7200 area.

Some selling flows in the longer end seem to have stirred the ROMGB market which reacted quite defensively and shifted up to 12 basis points higher. It could be a bit of profit taking but it could also be an end to the complacency as well in the light of recent events like the pension law or fiscal amnesty.

The standstill mood in the money market persists, with the entire curve trading broadly between the National Bank of Romania's 2.50% key rate and the 3.50% Lombard rate.