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Daily Market Patrol

Market Patrol 30 June 2021

If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.

Bill Lipschutz
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 loitered near recent peaks against its peers on Delta variant concerns
Fundamental News

EUR/USD
The shared currency dropped to $1.1894 on broad U.S dollar strength, following comments from US Federal Reserve Governor Waller that the central bank should start thinking about the rolling out of its massive stimulus program in 2021 to allow the option of raising interest rates by late 2022.

 

GBP/USD
Sterling cascaded to $1.3842 on concerns over British travelers banned from European Union due to Delta Covid variant spread.

 

USD/JPY
Yen seesawed around 110.49 per dollar, unaffected by U.S. consumer confidence which increased in June to its highest level since the COVID-19 pandemic started more than a year ago.

 

USD/CAD
Canadian dollar edged lower to 1.2392 against the greenback as new outbreaks of the Delta variant pressured economic activity slowdown.

 

AUD/USD
Aussie plunged to $0.7516 as widening coronavirus lockdowns in Australia threatened the country's rapid recovery from last year's recession.

 

USD/ZAR
Rand tumbled to 14.32 per dollar as new coronavirus outbreaks threatened to derail a global economic recovery.

 

USD/MUR
The local pair unchanged at 43.10(Selling).

Fundamental & Technical Data
Economic Indicators-Local Time

10:00 - GBP - GDP (YoY)(Q1)

10:00 - GBP - GDP (QoQ)(Q1)

11:15 - EUR - German Unemployment Change (Jun)

13:00 - EUR - CPI (YoY)(Jun)

16:30 - CAD - GDP(MoM)(Apr)

18:00 - USD - Pending Home Sales (MoM)(May)

18:30 - USD - Crude Oil Inventories 

 

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
1.1980
1.3948
111.04
15.57
R2
1.1955
1.3917
110.90
14.29
R1
1.1927
1.3877
110.72
13.94
PP
1.1902
1.3845
110.57
13.50
S1
1.1873
1.3805
110.39
13.23
S2
1.1849
1.3774
110.25
12.71
S3
1.1820
1.3733
110.06
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
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    Head – Treasury Sales
    +230 403 5500
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    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.