Tue, 23 Apr 2019
Forex Market JAPANESE YEN 112.00 111.00 110.00 109.00 108.00 CLOSE 111.93 1M %chg 3M %chg 1.84% 2.35% -USD/JPY ended flat yest at 111.94. It has slipped down to 111.65 today on exporter selling/deltahedging ahead of the Tokyo fix. -The Yen has firmed today, with demand seen from Japanese banks/corporate names heading into the Tokyo fix. -The Yen was also supported by the early losses in Chinese equities although this prop has since been removed. -There's been no reaction to BOJ executive director Maeda stating in parliament that the BOJ will consider further easing if the economy loses momentum ahead. -Sell on strength around 111.92/97 and at 112.26, targeting a run down to 109.88, placing stops at 113.06. EURO 1.15 1.14 1.13 1.12 1.11 CLOSE 1M %chg 1.1255-0.51% 3M %chg -0.91% -EUR/USD ticked up to 1.1262 yest before ending at 1.1257. -Lift came from a rally in EUR/CHF (momentum/leveraged buying after SNB President Jordan said over the wkend that the Franc remains highly valued and that they remain ready to intervene in the FX market if needed), EUR/AUD (positioning ahead of Wed's Aust Q1 CPI report) and EUR/GBP (renewed pressure on UK PM May). -Earlier today, EUR/USD briefly dipped down to 1.1245 on account of EUR/JPY drag but has since steadied around the 1.1250 level. -At present levels, there's no favourable risk-reward to establish fresh positions and we will stay on the sidelines for the time being. -Broadly speaking, our mid-term outlook remains bearish.
Forex Market POUND STERLING 1.36 1.35 CLOSE 1M %chg 3M %chg 0.19% 1.2982-1.72% 1.34 1.33 1.32 1.31 1.30 1.29 1.28 1.27 -GBP/USD eased down to 1.2976 yest before ending at 1.2982. -The Sterling dipped yest, with PM May's position coming back under pressure from Tory lawmakers angry over her Brexit strategy and how she's holding negotiations with the Labour Party. -The drag came from UK PM May's position coming under renewed pressure. -Currently little changed amidst thin trade flows. -We would still stay on the sidelines for the time being although we favour a mid-term strategy of selling on strength on account of latent Brexit uncertainties. 1.26 6.00 5.80 5.60 TURKISH LIRA 5.80 5.70 5.60 5.50 CLOSE 5.8262 0.28% 1.12% -No upadates as of today. 1D %chg 1M %chg 5.40 5.40 5.20 5.00 5.30 5.20 5.10 4.80 5.00
Commodities GOLD 1360.00 1340.00 1320.00 1300.00 1280.00 1260.00 1240.00 1220.00 CLOSE 1D %chg 1W %chg 1274.68-0.03% -1.01% -Gold prices edged up on Tuesday as Washington moved to choke off Iran's oil revenues, prompting safe haven buying, but gains were capped by a strong dollar and Asian shares hovering near a nine-month peak. -Spot Gold gained 0.1 percent to $1,275.78 per ounce as of 0115 GMT. -U.S. Gold futures were unchanged at $1,277.70 an ounce. 1200.00 BRENT 81.00 78.00 75.00 72.00 69.00 66.00 63.00 60.00 57.00 54.00 51.00 48.00 45.00 CLOSE 1D %chg 1W %chg 74.04 2.88% 4.02% -Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran. -Brent crude futures were at $74.40 per barrel at 0239 GMT, up 0.5 percent from their last close and not far off a 2019 peak of $74.52 reached on Monday. -U.S. West Texas Intermediate (WTI) crude futures hit their highest level since October 2018 at $65.95 per barrel before edging back to $65.89 by 0239 GMT, which was still up 0.5 percent from their last settlement.
Daily Market Report MARKET SUMMARY CENTRAL BANK OF KUWAIT INSTRUMENT OPEN HIGH LOW CLOSE %CHG 1D EUR 1.1244 1.1263 1.1234 1.1255 0.08% GBP 1.2994 1.2999 1.2973 1.2982-0.05% JPY 111.92 111.98 111.84 111.93 0.02% TRY 5.8102 5.8560 5.8030 5.8262 0.28% POLICY RATES INDICATOR As of Value Prior Change Dollar Idx 97.3750 97.4130 97.2580 97.2870-0.09% ON Repo Rate 20/Dec/'18 2.50 2.50 0.00 Brent 71.93 74.52 71.86 74.04 2.88% 1W Repo Rate 20/Dec/'18 2.75 2.75 0.00 WTC - - - 65.66 2.56% 1M Repo Rate 20/Dec/'18 3.25 3.25 0.00 Gold 1275.58 1279.71 1273.20 1274.68-0.03% KWD ON Rate 20/Dec/'18 10.00 10.00 0.00 KWSE Index 0.0000 0.0000 0.0000 #N/A 0.00% Discount Rate 20/Dec/'18 3.00 3.00 0.00 UPCOMING ECONOMIC RELEASES Tenor Value Tenor INDICATOR Ctry / Regn Time For Prior Consensus ON 2.39 3M 2.58 Build Permits R Numb* US 23/Apr 14:00 Mar 1.269 SW 2.41 6M 2.63 Monthly Home Price Index* US 23/Apr 15:00 Feb 272.0 1M 2.48 1Y 2.75 Redbook MM US 23/Apr 14:55 w/e 0.7 2M 2.54 PSNCR, GBP GB 24/Apr 10:30 Mar 0.638 KIBOR RATES 0 0 00/Jan 00:00 0 0 0 KWD (CBK FIX) CLOSE 0.30410 LIBOR RATES OTHER C-BANK RATES 1D %chg 0.00% INDICATOR As of Value Prior Change FED Target Rate 19/Dec/'18 2.50 1.25 1.25 Tenor Value Tenor Value ECB Refinancing Rate 10/Mar/'16 0.00 0.05-0.05 ON 1.56 3M 2.63 BOE Bank Rate 02/Aug/'18 0.75 0.50 0.25 SW 2.00 6M 2.88 BOJ Prime Rate 10/Jul/'17 1.00 0.95 0.05 1M 2.38 1Y 3.13 TRY ON Lending Rate 21/Sep/'18 25.50 24.00 1.50 Value
Economic Calendar & News ECONOMIC CALENDAR - Upcoming shortly INDICATOR Ctry / Regn Time For Prior Consensus Build Permits R Numb* US 23/Apr 14:00 Mar 1.269 Build Permits R Chg MM* US 23/Apr 14:00 Mar -1.70 Redbook MM US 23/Apr 14:55 w/e 0.7 Redbook YY US 23/Apr 14:55 w/e 5.0 Monthly Home Price Index* US 23/Apr 15:00 Feb 272.0 Monthly Home Price MM* US 23/Apr 15:00 Feb 0.6 Monthly Home Price YY* US 23/Apr 15:00 Feb 5.6 Consumer Confid. Flash EU 23/Apr 16:00 Apr -7.20-7.00 New Home Sales-Units US 23/Apr 16:00 Mar 0.667 0.650 New Home Sales Chg MM US 23/Apr 16:00 Mar 4.9-2.50 Rich Fed Mfg Shipments US 23/Apr 16:00 Apr 2 Rich Fed Comp. Index US 23/Apr 16:00 Apr 10 Rich Fed, Services Index US 23/Apr 16:00 Apr 5 Foreign Bond Investment JP 24/Apr 01:50 w/e 591.1 Foreign Invest JP Stock JP 24/Apr 01:50 w/e 528.5 PSNCR, GBP GB 24/Apr 10:30 Mar 0.638 PSNB, GBP GB 24/Apr 10:30 Mar -0.66-0.40 NEWS AND STREET BUZZ Global Top News -Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market's enthusiasm. -Japan's Nikkei slipped on Tuesday as investors took profits on such recent gainers such as Fast Retailing and Yaskawa Electric, offsetting gains in oil shares which rallied after the U.S. abruptly moved to end all Iran sanctions waivers. -Foreign inflows into Asian bonds surged in March as lower U.S. yields and hopes for a Sino-U.S. trade deal boosted demand for regional assets. -The Treasury yield curve steepened on Monday, with the kick-off of a busy auction week that will see $237 billion of new debt sold. -Dubai's economy is expected to grow by 2.1 percent in 2019, the government has forecast, recovering from a downturn last year when it hit its slowest pace since a 2009 contraction when the economy was hobbled by a debt crisis. -Turkey's Treasury will issue 5-year debt instruments worth a total of 3.7 billion euros to strengthen the capital of state banks, it said on Monday. -Abu Dhabi's stock market closed higher for the fourth straight session on Monday, aided by its largest lender First Abu Dhabi Bank, while petrochemical stocks pulled the Saudi market down. -Turkish state-owned lenders Ziraat Bank and Vakifbank completed pricing of perpetual bonds worth a total 2.1 billion euros ($2.36 billion), the banks said late on Friday, using a tool to strengthen capital. DISCLAIMER: This document and its contents do not reflect the opinions, views, policies or positions of Thomson Reuters or its affiliates and they are prepared for Kuwait Finance House (KFH) s and their clients internal consumption only and do not constitute an offer, or the solicitation of an offer, or advice to buy or sell a security or to make a particular investment or follow a particular strategy or enter into any agreement. The information and any views expressed are given as of the date of writing and are subject to change. While the information has been obtained from sources believed to be reliable, Thomson Reuters does not warrant that it is accurate or complete and it should not be relied on as such. Responsibility for any decisions taken by KFH (including but not limited to its affiliates and subsidiaries) on the basis of information contained herein solely rest with the end user i.e. KFH s clients. Market Data and News Source is Thomson Reuters Eikon. Thomson Reuters its affiliates, subsidiaries, employees, and contractors accept no liability for any direct or indirect loss arising out of the use of this document or its contents