0.45% % Forex Market 1.49% -1.71% JAPANESE YEN EURO. 1M %chg

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1 Sun, 25 Nov 2018

2 23-Aug 23-Aug Forex Market JAPANESE YEN CLOSE M %chg 3M %chg 0.45% 1.49% The broad Yen initially ticked higher yest on account of positional adjustments from Japanese banks and mild buying from Japanese corporates (ahead of today's Japanese holiday). -The Yen was also supported by a retreat in European equities and Brent crude. -That said, there was little follow-through of the early move as a rally in GBP/JPY provided support to the other Yen pairs. -There was little reaction to Japan's Oct CPI report (in line with expectations) or to BOJ Kuroda's comments (no fresh policy cues). -It's tech bias remains neutral, and our models still suggest an interim consolidation phase around a general / range. EURO 1.20 CLOSE 1M %chg % 3M %chg -1.71% In early trade yest, the Euro rebounded against the Antipodes on a mix of model/leveraged shortcovering. -There was a minor lift to BTPs and the Euro from a La Stampa report that Italian dpty PM Di Maio is open to some "modifications" in the budget during the parliamentary process, although this prop was quickly erased by a conflicting report from La Repubblica that Di Maio and Salvini both ruled out making material concessions on the budget (stating that "we're not changing a comma of the budget" as yielding now could trigger the collapse of the structure of the Italian coalition govt). -Salvini also said in a RAI interview that he won't back down on the budget but will speak to the European Commission's Juncker and Moscovici. -Sell on strength at , targeting a run down to , placing stops at

3 23-Aug 23-Aug Forex Market POUND STERLING 1.34 CLOSE 1M %chg 3M %chg % 0.02% The Sterling staged a knee-jerk rally yest on news that the EU-UK have agreed on the final part of the draft Brexit deal, and that the deal would be signed at Sun's EU summit. -This was in the form of a draft political declaration on the future relationship btwn the EU and UK (which needs to be endorsed by EU27 leaders), which sets out a broad outline of a "close" postdivorce trade relationship. -Specifically, this incorporates a guiding principle of "a free trade area, combining deep regulatory and customs co-operation" whilst hinting vaguely that the UK can take back border control and pursue it's own trade pacts with other nations (which is a back-handed way for PM May to sell the deal to Tory Brexiteers). -Sell at and add shorts on strength at , targeting a run down to /16, placing stops at TURKISH LIRA CLOSE 1D %chg 1M %chg % -7.69% -As slow start for CEEMEA markets on Friday, with the LIRA alight outperformer, as USD/TRY pulls back under the marker, but remains off yesterday's 3.5mth lows of This morning Tukrish FinMin Albayrak announced the Treasury may not access domestic debt market again this year in an effort to get borrowing costs lower. This is good news for the bond market, which has been rallying since November after the Treasury curbed sales, with the 10yr yield hovering below 16.50%. USD/TRY is trading sideways and a break down to the level looks unlikely today, but is on the cards in the near term. 0.00

4 23-Aug 23-Aug Commodities GOLD CLOSE 1D %chg 1W %chg % 0.09% -Gold prices slipped on Friday as investors banked on the safety of the dollar over worries about a slowdown in the global economy, exacerbated by a sharp decline in oil prices. -Spot Gold fell 0.4 percent to $1, per ounce by 1:24 p.m. EST (1824 GMT), while U.S. Gold futures for December delivery settled down $4.80, or 0.4 percent, at $1, "Crude prices are down and that pulls down the buying power of commodity accounts, so people are not buying gold," said George Gero, managing director at RBC Wealth Management BRENT CLOSE 1D %chg 1W %chg % % -Oil prices slumped up to nearly 8 percent to the lowest in more than a year on Friday, posting the seventh consecutive weekly loss, amid intensifying fears of a supply glut even as major producers consider cutting output. -Oil supply, led by U.S. producers, is growing faster than demand and to prevent a build-up of unused fuel such as the one that emerged in 2015, the Organization of the Petroleum Exporting Countries is expected to start trimming output after a meeting on Dec. 6. -Brent crude futures settled down $3.80 a barrel, or 6.1 percent at $ During the session, the benchmark dropped to $58.41, the lowest since October U.S. West Texas Intermediate crude (WTI) lost $4.21, or 7.7 percent, to trade at $50.42, also the weakest since October In post-settlement trade, the contract continued to fall.

5 Daily Market Report MARKET SUMMARY CENTRAL BANK OF KUWAIT INSTRUMENT OPEN HIGH LOW CLOSE %CHG 1D EUR % GBP % JPY % TRY % POLICY RATES INDICATOR As of Value Prior Change Dollar Idx % ON Repo Rate 25/Nov/' Brent % 1W Repo Rate 25/Nov/' WTC % 1M Repo Rate 25/Nov/' Gold % KWD ON Rate 25/Nov/' KWSE Index % Discount Rate 25/Nov/' UPCOMING ECONOMIC RELEASES Tenor Value Tenor INDICATOR Ctry / Regn Time For Prior Consensus ON M 2.69 Nikkei Mfg PMI Flash JP 26/Nov 01:30 SW M 2.89 National Activity Index US 26/Nov 14:30 Oct M 2.50 CaseShiller 20 YY US 27/Nov 15:00 Sep Dallas Fed Services Revenues* US 27/Nov 16:30 Nov 19.4 KIBOR RATES KWD (CBK FIX) CLOSE LIBOR RATES 1M Y 3.12 OTHER C-BANK RATES 1D %chg 0.00% INDICATOR As of Value Prior Change FED Target Rate 26/Sep/' Tenor Value Tenor Value ECB Refinancing Rate 10/Mar/' ON M 2.06 BOE Bank Rate 02/Aug/' SW M 2.38 BOJ Prime Rate 10/Jul/' M Y 2.63 TRY ON Lending Rate 21/Sep/' Value

6 Economic Calendar & News ECONOMIC CALENDAR - Upcoming shortly INDICATOR Ctry / Regn Time For Prior Consensus Nikkei Mfg PMI Flash JP 26/Nov 01:30 UK Finance Mortgage Apps GB 26/Nov 10:30 Oct National Activity Index US 26/Nov 14:30 Oct 0.17 Dallas Fed Mfg Bus Idx US 26/Nov 16:30 Nov CBI Distributive Trades GB 27/Nov 12:00 Nov 5 Redbook MM US 27/Nov 14:55 w/e 0.2 Redbook YY US 27/Nov 14:55 w/e 6.2 Monthly Home Price Index* US 27/Nov 15:00 Sep Monthly Home Price Index* US 27/Nov 15:00 Sep Monthly Home Price MM* US 27/Nov 15:00 Sep 0.3 Monthly Home Price MM* US 27/Nov 15:00 Sep 0.3 Monthly Home Price YY* US 27/Nov 15:00 Sep 6.1 Monthly Home Price YY* US 27/Nov 15:00 Sep 6.1 CaseShiller 20 MM NSA US 27/Nov 15:00 Sep 0.0 CaseShiller 20 MM SA US 27/Nov 15:00 Sep CaseShiller 20 YY US 27/Nov 15:00 Sep Consumer Confidence US 27/Nov 16:00 Nov Dallas Fed Services Revenues* US 27/Nov 16:30 Nov 19.4 NEWS AND STREET BUZZ Global Top News -Oil prices plunged on Friday on concerns about oversupply, sending world stock markets lower as lagging energy shares weighed down Wall Street. -Saudi Arabia's stock market rose sharply on Thursday, boosted by rebounding bank shares, while most Gulf markets were little changed in quiet trade. -Eni CEO Claudio Descalzi on Friday declined to say whether the Italian oil group would bid for the refining unit of Abu Dhabi state-owned oil company ADNOC, but added ENI was "always interested in things regarding" the Gulf country. -British Prime Minister Theresa May will seal a Brexit package deal with European Union leaders in Brussels on Sunday after an agreement to reassure Madrid on a future say on Gibraltar lifted a threat of a Spanish veto. -The Thanksgiving Day and Black Friday kickoff of the U.S. holiday shopping season showed the increasing preference for online purchases, as more Americans opted to stay home and use their smartphones while sales and traffic at brick-and-mortar stores declined. -Investors would normally be thankful for a strong U.S. economy, yet this holiday season they worry retailers may have to spend heavily to win, leaving shareholders with a lump of coal. -Democrats on the U.S. House intelligence panel will investigate U.S. President Donald Trump's response to the murder of journalist Jamal Khashoggi as part of a "deep dive" next year into U.S.- Saudi Arabia ties, the committee's incoming head said in a report published on Friday. -China's primary money rates ended Friday's session modestly lower from a week earlier and are set to stay down over the near term as authorities seek to support slowing growth. Texas Serv Sect Outlook* US 27/Nov 16:30 Nov 14.1 Foreign Bond Investment JP 28/Nov 00:50 w/e Retail Sales YY JP 28/Nov 00:50 Oct Foreign Invest JP Stock JP 28/Nov 00:50 w/e

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