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Daily Market Patrol

Market Patrol 6 July 2021

If you can learn to create a state of mind that is not affected by the market's behavior, the struggle will cease to exist.

Mark Douglas
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
The Aussie dollar rocketed to $0.7585 after the Reserve Bank of Australia (RBA) kept its interest rate unchanged.
Fundamental News

EUR/USD

The Shared currency climbed to $1.1879 on upbeat Eurozone PMIs economic data and ahead of German ZEW economic sentiment later today.

 

GBP/USD
The Cable catapulted to $1.3878 on the back of strong services PMI beating expectations and after Prime Minister Boris Johnson announced a likely end to all COVID-19 restrictions on July 19.

 

USD/JPY
The Japanese yen extended gains to 110.81 versus the greenback as Americans return from a long weekend ahead of the U.S ISM Services PMI.

 

AUD/USD
The Aussie dollar rocketed to $0.7585 after the RBA kept its interest rate unchanged at 0.10% as it handed down its policy decision earlier in the day.

 

USD/CAD
The Loonie benefited to 1.2305 per U.S dollar on the back of Global oil producers failed to reach an agreement during the latest OPEC+ meeting, indicating the continuation of the restrained output policies.

 

USD/ZAR
The South African rand soared to 14.19 against the U.S dollar, digesting last week's U.S. jobs report soothed jitters about a faster end to monetary stimulus in the United States.

 

USD/MUR
The dollar-rupee stayed put at 43.20(selling) on the local market.

Fundamental & Technical Data
Economic Indicators-Local Time

12:30 - GBP - Composite PMI (Jun)

13:00 - EUR - German ZEW Economic Sentiment (Jul)

18:00 - USD - ISM Non-Manufacturing PMI (Jun)

 

 

Central Bank Interest Rates
Last Change
New Meeting
Federal Bank of U.S
0.00-0.25%
16-Mar-2020
28-Jul-2021
European Central Bank
0.00%
10-Mar-2016
22-Jul-2021
Bank of England
0.10%
19-May-2020
05-Aug-2021
Bank of Japan
-0.10%
28-Jan-2016
16-Jul-2021
Reserve Bank of Australia
0.10%
03-Nov-2020
06-Jul-2021
S.Africa Reserve Bank
3.50%
23-Jul-2020
-
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
1.1907
1.3910
111.57
15.57
R2
1.1894
1.3886
111.38
14.29
R1
1.1878
1.3866
111.18
13.94
PP
1.1865
1.3842
110.99
13.50
S1
1.1849
1.3822
110.79
13.23
S2
1.1836
1.3798
110.60
12.71
S3
1.1820
1.3778
110.40
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
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    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.