Internet Banking
Click icon again to close

Treasury

Daily Market Patrol

Market Patrol 25 June 2021

If you personalise losses, you can’t trade.

Bruce Kovner
Indicative Selling Rates
against MUR
USD
24 Sep 2021
  • AUD
  • 31.55
  • 0.7362
  • BWP
  • 3.91
  • 0.0913
  • CAD
  • 34.11
  • 1.2564
  • CNY
  • 6.72
  • 6.3745
  • DKK
  • 6.87
  • 6.2409
  • EUR
  • 50.50
  • 1.1785
  • HKD
  • 5.60
  • 7.6580
  • INR
  • 0.59
  • 72.6590
  • JPY
  • 39.12
  • 109.5434
  • KES
  • 39.35
  • 108.8984
  • NZD
  • 30.55
  • 0.7130
  • NOK
  • 5.08
  • 8.4425
  • SGD
  • 32.10
  • 1.3351
  • ZAR
  • 2.96
  • 14.4639
  • SEK
  • 5.03
  • 8.5245
  • CHF
  • 46.66
  • 1.0889
  • GBP
  • 59.01
  • 1.3772
  • USD
  • 42.85
  • 1.0000
  • AED
  • 11.80
  • 3.6323
U.S dollar firmed as U.S President Biden delivered $569 billion infrastructure plan in Senate.
Fundamental News

EUR/USD
The common currency wobbled near $1.1940, shrugging off U.S. President Biden on Thursday embracing a bipartisan Senate deal to deliver $569 billion of dollars on building roads, bridges and highways. Market eyeing PCE inflation report featured in the US economic docket later.

 

GBP/USD
The pound initially dropped to $1.3888 before recovering to $1.3920 on Thursday, after the Bank of England left its benchmark interest rate at an all-time low and said inflation would surpass 3% as Britain's locked-down economy reopens, but the climb further above its 2% target would only be "temporary".

 

USD/JPY
Yen seesawed near 110.85 per dollar as fewer Americans filed new claims for unemployment benefits last week, weaker than the market expectation.


USD/CAD
Loonie tread water at 1.2313 against the greenback following preliminary data for May from Statistics Canada showed factory sales rising 1% from April and wholesale trade up 1.1%.

 

AUD/USD
Aussie edged higher to $0.7592 on reports suggesting China may increase fiscal policy support in H221 to meet its budget deficit goal and accelerate local bond issuances to boost infrastructure investment.

 

USD/ZAR
Rand soared to 14.17 per greenback after Statistics South Africa also published data showing that producer price inflation quickened to 7.4% year-on-year in May, from 6.7% in April.

 

USD/MUR
The domestic pair unchanged at 41.45(selling).

Fundamental & Technical Data
Economic Indicators-Local Time

 

 

 

Central Bank Interest Rates
Last Change
New Meeting
Federal Bank of U.S
0.00-0.25%
16-Mar-2020
16-Jun-2021
European Central Bank
0.00%
10-Mar-2016
10-Jun-2021
Bank of England
0.10%
19-May-2020
24-Jun-2021
Bank of Japan
-0.10%
28-Jan-2016
18-Jun-2021
Reserve Bank of Australia
0.10%
03-Nov-2020
01-Jun-2021
S.Africa Reserve Bank
3.50%
23-Jul-2020
20-May-2021
Reserve Bank of India
4.00%
22-May-2020
06-Aug-2021
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
1.1992
1.4073
111.52
15.57
R2
1.1974
1.4030
111.32
14.29
R1
1.1953
1.3976
111.09
13.94
PP
1.1935
1.3933
110.89
13.50
S1
1.1914
1.3878
110.67
13.23
S2
1.1897
1.3835
110.47
12.71
S3
1.1876
1.3781
110.24
11.43
Technical Analysis - Forex Charts
USDJPY finally topped exactly in the 110.80-111.00 resistance zone before trimming most of its post Fed gains. What next?
Chart updated on 21.06.2021

“ Its not that I am so smart. Its just that I observe the market longer. Patience is key to success.”  - Anonymous

 

Policy statement from the US Federal Reserve certainly helped fuel a spike upwards in the USDJPY which topped exactly in the  110.80-111.00 resistance zone ( Based on our previous forecast on 28.05.21)  before trimming most of its post Fed gains.  What next?

 

The Bank of Japan kept its policy unchanged today and held its negative interest rate firm while also holding steady to its quantitative easing program in contrast with the FED.  The special COVID program is also extended till March 2022. The lag in economic recovery has put institutions under stress , with BOJ responding that they will announce new loan measures in the near term.

 

 

The sudden burst of volatility and uncertainty will continue to prevail in the market in the coming sessions. The forex pair , hovering near critical values of  110.80-111.00, remains a key pivot in the near term. 110.80 marks a complete A-B-C corrections as per Elliott wave principle which coincides also with 100% Fibo Extension.  A strong break and close above these levels could signal medium term buying in the USD amid breach of stop losses.

 

Shorts in USDJPY  can be initiated in the region of 110.50-110.80 with a stop above 111 with targets towards 109 and 108 levels.

 

Weekly Technical Analysis on GBP by Aassan Deedarun 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.