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Daily Market Report
19 April 2017
Today’s Data Watch
Time Data Fore-cast Prev. Importa
nce
18:00
USD U.S. Federal Reserve
Releases Beige Book
- -
MEDIUM
22:45
NZD Consumer Prices Index
(YoY) (1Q)
2.0% 1.3%
HIGH
23:50
JPY Japan Buying Foreign
Bonds (Yen) (APR 14)
- -¥2176.8b
MEDIUM
Data from Yesterday
Time Data Actual Fore-cast Prev.
13:00
CAD Existing Home Sales (MOM)
(MAR)
1.1% - 5.2%
13:15 USD Industrial Production (MAR) 0.5% 0.5% 0.1%
22:30
USD Manufacturing (SIC)
Production (MAR)
-0.4% 0.0% 0.3%
FX Market Update
USD
The dollar index traded near three-week lows today
dragged down by a resurgent sterling after British Prime
Minister Theresa May called for an early general election
ahead of Brexit negotiations.
EUR
French opinion polls show that far-right leader Marine Le
Pen and centrist Emmanuel Macron qualifying next
Sunday for the May 7 run-off, but the gap with
conservative Francois Fillon and far-leftist Jean-Luc
Melenchon has been tightening.
GBP
The British currency sailed to more than six-month highs
after May said the election would "secure the strong and
stable leadership" position needed for talks with the
European Union about terms for the looming exit. Sterling
was steady on the day at $1.2845 after rising as high as
$1.2908 yesterday, its highest since early October, as
investors scurried to cover short positions.
ZAR
South African stocks slid yesterday, dragged down by
resources companies, while the rand firmed slightly amid
lingering political uncertainty. During early trading on
yesterday, the rand reached 13.2400 against the dollar, its
strongest since March 30. By the close the currency was
up 0.08 percent at 13.2800.
JPY
The dollar edged up 0.1 percent to 108.57 yen. Moreover,
a senior government official said that Japanese Deputy
Prime Minister Taro Aso and U.S. Vice President Mike
Pence did not discuss currencies in the first round of the
bilateral economic dialogue.
INR
INR has opened higher at 64.60 as compared to
Tuesday’s close of 64.63 as a result of sharp fall in the
Dollar globally. USD/INR is expected to trade in the range
of 64.40 to 64.70.
MGA
USD/MGA trading at 3190-3250 and EUR/MGA trading in
the range 3400-3475 for the day. The local FX market is
short to the tune of USD 14 M
Trading Idea
SELL EUR/USD AT 1.0775 TP AT 1.0700 SL AT 1.0815
Mauritian Market Highlights
Result of the Re-Opening of 3.25% Five Year Government of Mauritius
Bonds due 10
th
February 2022 held yesterday came to a weighted yield
of 3.99% p.a.
Bond Buzz and Money Market news
The increased geopolitical event risk has caused the Treasury curve to
flatten. Investors are keeping a keen eye on the North Korean situation,
the tightening French presidential election and the snap UK general
election. The two-year note yield rallied 4.1bps to 1.16%. The 10-year
bond yield decreased 8.2bps to 2.168%.