Briefing Romania

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.

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.

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.