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Daily Market Patrol

Market Patrol 21 May 2020

The question isn't who is going to let me; it's who is going to stop me.

Ayn Rand
Indicative Selling Rates
against MUR
USD
20 Sep 2021
  • AUD
  • 31.22
  • 0.7295
  • BWP
  • 3.91
  • 0.0914
  • CAD
  • 33.73
  • 1.2691
  • CNY
  • 6.71
  • 6.3788
  • DKK
  • 6.84
  • 6.2566
  • EUR
  • 50.31
  • 1.1755
  • HKD
  • 5.59
  • 7.6619
  • INR
  • 0.59
  • 72.6819
  • JPY
  • 39.24
  • 109.0796
  • KES
  • 39.39
  • 108.6531
  • NZD
  • 30.30
  • 0.7080
  • NOK
  • 4.98
  • 8.5866
  • SGD
  • 32.02
  • 1.3367
  • ZAR
  • 2.94
  • 14.5487
  • SEK
  • 4.98
  • 8.5976
  • CHF
  • 46.22
  • 1.0799
  • GBP
  • 58.88
  • 1.3757
  • USD
  • 42.80
  • 1.0000
  • AED
  • 11.78
  • 3.6323
The U.S dollar clawed back some of the week’s losses on Thursday morning on mounting U.S-China tensions and weak economic indicators dampening the global mood.
Fundamental News

EUR/USD
The Single currency firmed at $1.0963 as a Franco-German proposal for a common 500 billion euro ($543 billion) coronavirus-fuelled Recovery Fund that could move Europe closer to a fiscal union boosted demand for the currency

 

GBP/USD 
The British Pound under pressure below $1.2200 as soft inflation stoked more talk of negative interest rates from the Bank of England to bolster an economy hammered by the coronavirus pandemic.

 

USD/JPY
The Japanese yen steadied at 107.70 against the greenback on mixed global sentiment on US-China tensions stemming from tweets on late Wednesday from U.S President Trump, suggesting that his Chinese counterpart Xi’s direct responsibility for a “disinformation and propaganda attack on the United States and Europe.”

 

AUD/USD
The risk-sensitive Aussie erased some of its gains at $0.6616 to $0.6560 following dovish comments from the RBA Governor Lowe, iterating that the RBA was prepared to scale up its stimulative bond purchases if needed.

 

USD/ZAR
The South African Rand edged up on Wednesday to 18.00 versus the U.S dollar, though investors remained cautious ahead of SARB interest rates decision today.

 

USD/MUR
On the domestic market, the USD/MUR stayed put at 40.30(selling) range.

Fundamental & Technical Data
Economic Indicators-Local Time

11:30 - EUR - German Manufacturing PMI (May)

12:30 - GBP - Composite PMI 

12:30 - GBP - Manufacturing PMI

12:30 - GBP - Services PMI

16:30 - USD - Philadelphia Fed Manufacturing Index (May)

18:00 - USD - Existing Home Sales (Apr)

22:30 - USD - Fed Chair Powell Speaks

 

 

Central Bank Interest Rates
Last Change
New Meeting
Federal Bank of U.S
0.00-0.25%
16-Mar-2020
10-Jun-2020
European Central Bank
0.00%
10-Mar-2016
04-Jun-2020
Bank of England
0.10%
19-May-2020
18-Jun-2020
Bank of Japan
-0.10%
28-Jan-2016
16-Jun-2020
Reserve Bank of Australia
0.25%
18-Mar-2020
02-Jun-2020
S.Africa Reserve Bank
4.25%
14-Apr-2020
21-May-2020
Reserve Bank of India
4.40%
27-Mar-2020
03-May-2020
Bank of Mauritius
1.85%
16-Apr-2020
-
Looking for Markets correlation?
Market Correlation is a measure, statistical or observational, that gives a positive or negative link between the pricing of multiple currencies.

Bulls & Bears Levels
Resistance and Support
Levels
EUR/USD
GBP/USD
USD/JPY
USD/ZAR
R3
1.1093
1.2344
108.55
19.54
R2
1.1046
1.2316
108.27
19.34
R1
1.1013
1.2278
107.90
19.17
PP
1.0966
1.2250
107.62
18.76
S1
1.0932
1.2212
107.26
18.58
S2
1.0886
1.2184
106.97
17.99
S3
1.0852
1.2146
106.61
17.81
Technical Analysis - Forex Charts
Safe-haven nature of FRANC SWISS may plummet USD/CHF to a downfall
Chart updated on 13.04.2020
  • From an Elliott Wave standpoint, USDCHF could potentially unfold into compelling impulsive Wave C of the zigzag correction of Wave (2) to a narrowing region 0.9550 (50% retracement of Wave (1)) to 0.9395 (100% projection of Wave A through B) in the near term trend, from the downside bias from April 6th high of 0.9797.
  • Price could immediately start to shoot back up into Wave (3) on a longer perspective.
  • Piercing above the resistance 0.9905 would endorse the structure.
  • Alternatively, broader bearish invalidation of Elliott Wave Structure rest at 0.9191 of March 9th low while Relative Strength Index signals a bullish recoil higher for the pair.
Japanese Yen rebound may fizzle its way back to Safe-haven status
Chart posted on 14.04.2020

• After rallying to the downside from a high of 112.22 to 101.17 amid global pandemic threat, USD/JPY has been in a correcting mode since 9th March 2020 and seemed to have recently completed an W-X-Y Double Zig-Zag structure of Wave (2) reaching a high of 111.64 on 27th March 2020.
• Two strong indicators were flashing a trend reversal: ending diagonal at Wave 5 of Wave c and bearish RSI divergence.
• On the hourly chart, as per Elliott Wave analysis, the pair might resume its downwards trend targeting 100.64 - 93.78 to unfold Wave (3), a projection of 100%-161.8% of Fibonacci level.
• At 107.70 today, USD/JPY is percolating towards its target from 110.41 to 107.84, as per chart.
• On a side note, resumption of a bullish USD/JPY would mark an invalidation of the Elliott Wave structure above 112.22

Weekly FX Market Analysis by Karishma Sewock Nobutsing on Radio One
Speak to our team
  • Allan Juste
    Head - Forex And Derivatives
    +230 5251 4855
  • Reshma Peerun Rajwani
    Head – Treasury Sales
    +230 403 5500
  • Karishma Sewock Nobutsing
    Senior Dealer - Treasury Sales
    (+230) 5943 9837
Disclaimer
Please note that the information published is purely indicative. It is based on technical data from sources which the Bank verily believes to be authentic, though its timeliness or accuracy cannot be warranted or guaranteed. AfrAsia Bank Ltd issues no invitation to anyone to rely on this bulletin and neither we nor our information providers shall be in no way whatsoever, liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness, or for any delay or interruption in the transmission thereof to the user. The indicative rates and other market information are subject to changes at the Bank's discretion. Whilst every effort is made to ensure the information is accurate, you should confirm the latest situation with the Bank prior to making any decisions.