"The noblest revenge is to forgive." - Thomas Fuller

FOREX MARKET
On Monday, the EUR/USD was traded in a tight range between 1.3000-1.3030 area for most of the forex session, as investors started to doubt dollar's capacity to further strengthen against the euro, as long as the EZ economy is recovering while US is seen as slowing down in the future. Therefore, the appreciation of the dollar looks quite overdone, as it could not post more gains, while the upbeat in US recent data was largely contained in greenback's rally against the euro.
The domestic currency started the week slightly weaker, with bids standing in the 3.3800 zone, despite a slight improvement in short term interest rates on the interbank market, due to the T-bills auction to be hold today by MF. The EUR/RON headed for 3.4000 resistance zone, which held on this time. By noon time, the pair found some stability in the 3.3850-3.3870 zone, as players refrain from taking new positions before the announcement of results at the auctions of MF. After the MF release, RON strengthened slightly against the euro, ending the session in the 3.3800-3.3820 zone.
On January 9th, the EUR/RON was quoted in the 3.3750-3.3850 zone in the first hours of trading, but around noon, the single currency followed a slight upside bias up to 3.3930 level. For the moment, the pair lacks a clear direction, amid quiet forex session. The ON interest rates remained low and unsupportive for the RON, which is rangebound in yesterday's levels, despite a recovery of its regional peers.

MONEY MARKET
On January 8th, the NBR did not hold deposit auction for the first time since they decided to drain the surplus liquidity from the market at the beginning of each week. Probably, they left this task to Minister of Finance, which issued T-bills worth RON 2.5bln, returning to domestic debt market after a long absence, due to the tight fiscal policy conducted by the present Government. The offer of MF was largely oversubscribed, with the average yield standing at 6.04% for the 30-day maturity, while for the six-month T-bills the average yield reached only 6.28%, showing that the market is expecting a decrease of effective interest rates in the coming months. Today, the ON maturities are traded for 0.7/2% interest rates, due to the persistent high liquidity.