-0.50% % Forex Market 1.49% -2.18% JAPANESE YEN EURO. 1M %chg

Transcription

1 Tue, 02 Apr 2019

2 Forex Market JAPANESE YEN CLOSE M %chg 3M %chg -0.50% 1.49% The Yen was again on the backfoot yest as a result of the market's risk-on tone (underpinned by the upbeat Chinese PMIs and then by the headline beat in the US Mar ISM mfg PMI), while traders shrugged off a weak Q1 Tankan survey (as investors focus on the potential lift from a recovery in the Chinese economy). -The Yen has however stabilized today on account of a knee-jerk slide in GBP/JPY (after the UK parliament rejected all Brexit Plan Bs) and the lack of follow-through conviction in Asian risk assets. -USD/JPY's advance was initially capped yest by selling interest around /23 and the pair briefly dipped back below on account of the broad USD's initial weakness. -Sell at , targeting a run down to , placing stops at EURO CLOSE 1M %chg % 3M %chg -2.18% -EUR/USD ticked up to yest on lift from EUR/JPY, but offers around /60 capped the topside after the miss in EZ Mar flash CPI. -The pair was then faded down to by HFTs and leveraged specs on account of the broad USD's rebound during the US morning before settling just a touch softer at It has been mildly offered by HFTs thus far today as a result of negative Sterling contagion but bids around will look to support. -Buy at , targeting a rebound up to , placing stops at

3 Forex Market POUND STERLING CLOSE 1M %chg 3M %chg % 2.73% The Sterling was trading with a soft tone early yest as Asia reacted to the Brexit mess (exception being against the Yen), but this then flipped to short-covering as the focus turned to the Brexit Plan B debate/votes. -The Sterling was then bid during European trade amidst chatter that either common market 2.0/customs union proposals could be passed, with help from EUR/GBP profit-taking (after a soft batch of EZ mfg PMIs and soft EZ flash CPI) and further lift from a strong headline beat in the UK Mar mfg PMI (55.1 vs f/c 51.2 and 52.1 prev). -Earlier today though, the Sterling saw a knee-jerk slide after the UK House of Commons again rejected all 4 Brexit Plan Bs to exacerbate the Brexit impasse. -We would stay on the sidelines for the time being but still favour a mid-term strategy of selling the Sterling on strength when considering all the potential Brexit outcomes TURKISH LIRA CLOSE 1D %chg 1M %chg % 2.09% -The Turkish lira firmed on Monday, clawing back early losses after President Tayyip Erdogan's AK Party lost control of the capital Ankara in local elections and trailed in Istanbul, Turkey's largest city, as the last votes were tallied. -At 1523 GMT, the lira stood at 5.45 against the U.S. dollar, firming from Friday's close of It had weakened as far as in early trade. -The lira tumbled almost 30 percent against the dollar last year and Turkey's economy has tipped into recession. In an echo of the 2018 crisis, the currency has swung wildly in the last six trading days as the government and central bank unleashed a series of stop-gap support measures.

4 Commodities GOLD CLOSE 1D %chg 1W %chg % -2.60% -Gold prices slipped to a more than three-week low on Tuesday as waning global economic slowdown concerns lifted the dollar and equity markets. -Spot Gold was flat at $1, per ounce by 0332 GMT, after touching its lowest since March 8 at $1, earlier in the session. -U.S. Gold futures were down about 0.2 percent at $1, an ounce. -"Concerns we saw emerge in the past few weeks around economic growth has certainly eased and that shift (in sentiment) in the past day or two resulted in little bit of selling in gold market," ANZ analyst Daniel Hynes said. BRENT CLOSE 1D %chg 1W %chg % 2.68% -Oil prices rose to fresh 2019 highs on Tuesday, supported by firm Chinese economic data that eased demand concerns, the possibility of more sanctions on Iran and further Venezuelan supply disruptions. -Brent crude rose 32 cents, or 0.5 percent, to $69.33 a barrel by 0212 GMT, having earlier touched $69.50, the highest since mid-november. -U.S. West Texas Intermediate (WTI) futures rose 30 cents, or 0.5 percent, to $61.89 a barrel, after earlier rising above $62 for the first time since early November.

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 20/Dec/' Brent % 1W Repo Rate 20/Dec/' WTC % 1M Repo Rate 20/Dec/' Gold % KWD ON Rate 20/Dec/' KWSE Index % Discount Rate 20/Dec/' UPCOMING ECONOMIC RELEASES Tenor Value Tenor INDICATOR Ctry / Regn Time For Prior Consensus ON M 2.60 Markit/CIPS Cons PMI GB 02/Apr 10:30 Mar SW M 2.66 Durables Ex-Defense MM US 02/Apr 14:30 Feb M Y 2.71 Producer Prices YY EU 02/Apr 11:00 Feb M 2.56 Services PMI JP 03/Apr 02:30 Mar 52.3 Markit Serv Final PMI EU 03/Apr 10:00 Mar KIBOR RATES KWD (CBK FIX) CLOSE LIBOR RATES OTHER C-BANK RATES 1D %chg 0.00% INDICATOR As of Value Prior Change FED Target Rate 19/Dec/' Tenor Value Tenor Value ECB Refinancing Rate 10/Mar/' ON M 2.69 BOE Bank Rate 02/Aug/' SW M 2.88 BOJ Prime Rate 10/Jul/' M Y 3.13 TRY ON Lending Rate 21/Sep/' Value

6 Economic Calendar & News ECONOMIC CALENDAR - Upcoming shortly INDICATOR Ctry / Regn Time For Prior Consensus Markit/CIPS Cons PMI GB 02/Apr 10:30 Mar Producer Prices MM EU 02/Apr 11:00 Feb Producer Prices YY EU 02/Apr 11:00 Feb Durable Goods US 02/Apr 14:30 Feb Durables Ex-Defense MM US 02/Apr 14:30 Feb Durables Ex-Transport US 02/Apr 14:30 Feb Nondefe Cap Ex-Air US 02/Apr 14:30 Feb Redbook MM US 02/Apr 14:55 w/e 0.1 Redbook YY US 02/Apr 14:55 w/e 5.3 ISM NY Biz Conditions US 02/Apr 15:45 Mar 61.1 ISM-New York Index US 02/Apr 15:45 Mar Domestic Car Sales* US 02/Apr 21:30 Mar Total Vehicle Sales* US 02/Apr 21:30 Mar Foreign Bond Investment JP 03/Apr 01:50 w/e Foreign Invest JP Stock JP 03/Apr 01:50 w/e Services PMI JP 03/Apr 02:30 Mar 52.3 Markit Comp Final PMI EU 03/Apr 10:00 Mar Markit Serv Final PMI EU 03/Apr 10:00 Mar Reserve Assets Total* GB 03/Apr 10:30 Mar Retail Sales MM EU 03/Apr 11:00 Feb Retail Sales YY EU 03/Apr 11:00 Feb Markit/CIPS Serv PMI GB 03/Apr 11:30 Mar MBA 30-Yr Mortgage Rate US 03/Apr 13:00 w/e 4.45 NEWS AND STREET BUZZ Global Top News -Asia shares extended their rally on Tuesday as positive Chinese and U.S factory activity surveys aided investor confidence, and the ebbing concerns over the global economy spurred selling of safe-haven U.S. bonds as yields rose from 15 month troughs. -Dubai's stock market hit a four-month high on Monday, partly lifted by its largest lender Emirates NBD as one of its businesses prepares to list on the London Stock Exchange, while Egypt was boosted by its top lender Commercial International Bank. -Lockheed Martin Corp was awarded a $2.4 billion Pentagon contract on Monday for THAAD interceptor missiles, some of which are slated to be delivered to the Kingdom of Saudi Arabia. -Saudi Aramco, the world's biggest oil producer, made core earnings of $224 billion last year, almost three times as much as Apple, figures from the state-owned company showed on Monday ahead of its debut international bond issue. -Egypt's current account deficit widened to $2.1 billion in the last three months of 2018 from a deficit of $1.78 billion in the same period a year previously, according to Reuters calculations based on central bank data released on Monday. -Saudi Arabia has no immediate plans to allow Boeing 737 MAX aircraft to operate in the kingdom, its transport minister said on Monday, as state airline flyadeal potentially reconsiders an order for the jets. -Abu Dhabi-based oil and gas services contractor, National Petroleum Construction Company s (NPCC) operating profit grew 27 percent in 2018, driven by business in Saudi Arabia, its chief executive said on Monday. -Payments processor Network International had its books covered rapidly on Monday after announcing a flotation that values the company at up to $3 billion in its forthcoming London listing, one source close to the deal said.

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