Briefing Romania

The EUR/RON traded with an upside bias for most of yesterday’s trading session, testing 4.7400. For today, we still see the pair in the 4.7300-4.7400 range with upside tests more and more likely.

Local specific factors prevented Romanian government bonds from joining the regional rally. The yield curve closed quasi flat versus the previous day after an initial sell off, likely triggered by political developments. Market players will probably continue to be cautious before we get some clarity on the political front while waiting for the September auction calendar as well.

Cash rates continue to trade with a slight easing bias, in line with our expectations for the coming days as well.