Snaps
29 July 2019

Briefing Romania

Awaiting the Fed decision

Romania_in_Europe.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON continued to float narrowly around 4.7250 on low turnover. Softening cash rates could reignite the upward pressure; we look for a test at 4.7300.

Government bonds

The strong gains in Romanian government bonds came almost to a standstill on Friday. This stance could be prolonged beyond today as markets eye the Federal Reserve's rate decision on Wednesday. The August auction calendar is expected by that date as well.

Money market

As expected, the front end implied yields eased and closed the day around 2.80%. Today’s NBR deposit taking auction (if announced) should keep rates around 2.50% for the next few days.

 - Source: Reuters, ING estimates
Source: Reuters, ING estimates