Daily Market Report
15 June 2017
Trading Idea
FX Market Update
USD
Today the dollar nursed losses, after weak U.S. inflation
data left investors wondering if the Federal Reserve would
be able to follow up its latest rate hike with another later
this year. The Fed raised interest rates a quarter
percentage point to a target range of 1.00 percent to 1.25
percent on Wednesday, as expected, and gave its first
clear outline on its plan to reduce its $4.2-trillion bond
portfolio.
EUR
The euro was also unchanged at $1.1217, below a sevenmonth peak of $1.1296 scaled overnight.
GBP
Britain's pound slipped towards a seven-month low
against the euro yesterday, hurt by political uncertainty
and weaker-than-expected earnings numbers that
underscored the economic challenges Britain faces as it
leaves the European Union. Against a broadly weaker
dollar, sterling was up yesterday, topping $1.28 for the first
time since last week's UK election results.
ZAR
Yesterday South Africa's rand gained as the dollar fell
after the United States reported weaker-than-expected
inflation and retail sales data.
JPY
Against its Japanese counterpart, the dollar shrugged off
earlier losses and was flat at 109.54 yen, above
yesterday's eight-week low of 108.81 yen. Tomorrow, the
Bank of Japan is widely expected to keep its monetary
policy unchanged, and reassure markets it will lag the Fed
in tapering its massive stimulus programme, as Japan's
inflation remains low despite a strengthening economy.
INR
MGA
INR has opened higher at 64.27 as compared to
yesterday’s close of 64.2975.USD/INR currently trading at
64.29. USD/INR is expected to trade in the range of 64.20
to 64.40.
USD/MGA trading at 3170-3240 and Euro/MGA trading in
the range 3550/3640 for the day. The local FX market is in
excess of USD 17 M.
BUY EUR/USD AT 1.1180 TP AT 1.1260 SL AT 1.1145
Mauritian Market Highlights
Yesterday the Bank of Mauritius intervened on the foreign exchange market and
purchased U.S Dollar at Rs34.85
The result for yesterday’s auction conducted by the Bank of Mauritius for the
Re-Opening of the 3.25% Five Year Government of Mauritius Bonds maturing on
10 February 2022 for a revised amount of Rs2,000 million for settlement on
Friday 16 June 2017 came to a weighted yield of 3.49% p.a.
Bond Buzz and Money Market news
U.S. Treasurys held higher after the Fed's announcement, with the benchmark
10-year yield sliding 8.2bp to 2.145 percent and the 2-year yield sliding 2.8bp to
1.335%. The 2-10yr spread also flattened by another 5bp.
Today’s Data Watch
Time
Data
Fore-cast
Prev.
Importan
ce
11:30
CHF SNB Sight Deposit Interest
Rate (JUN 15)
-0.75%
-0.75%
HIGH
15:00
GBP Bank of England Rate
Decision (JUN 15)
0.25%
0.25%
HIGH
16:30
USD Initial Jobless Claims (JUN
10)
241k
245k
MEDIUM
Data from Yesterday
Time
Data
Actual
Fore-cast
Prev.
16:30
USD Advance Sales (MAY)
-0.3%
0.0%
0.4%
16:30
USD Consumer Price Index (YoY)
(MAY)
1.9%
2.0%
2.2%
22:00
USD Federal Open Market
Committee Rate Decision – Lower
Bound (JUN 14)
1.00%
1.00%
0.75%
Central Bank Rates
Crude oil
FED
1.25%
BOE
0.25%
ECB
0.00%
BOM Repo
4.00%
RBI Repo
6.25%
BCM Repo
8.70%
Government of Mauritius Securities
91 days
1.98%
182 days
2.03%
364 days
2.18%
3 Year
3.17%
5 Year
3.99%
10 Year
4.95%
Share Performance
Share Performance
International Bond
MCC Holding Hong Kong Corporation Ltd. issues
corporate debt. The Company issues notes and lends
the proceeds of those issues to its corporate parent.
MCC Holding HK Corp Ltd. USD Bond maturing on
31st May 2020 is trading at a yield of 2.700% p.a.
Bonds Ratings
Moody’s
Baa2
S&P
NA
Fitch
NA
Source: Bloomberg
Disclaimer: This report has been prepared by members of the Financial Markets Division of the SBM Bank (Mauritius) Ltd, who are not considered as
research analysts and information contained therein should not be considered as “research” as that term is defined by applicable regulations.
Information has been collected from sources believed to be reliable and in good faith by the bank, but no representation or warranty, expressed or
implied, is made as to their accuracy, completeness or correctness. The information may include opinions, estimates, indicative rates, terms, price
quotations and projections which reflect existing market conditions and are subject to change, modification or amendment without any prior notice
and may vary from views expressed by other members and reports of the bank or any other institution. The analysis and data compilations contained
therein are based on numerous assumptions; different assumptions could result in materially different opinions.
Sources : Bloomberg, Reuters, Bank of Mauritius
Contact :
SBM Bank (Mauritius) Ltd
Financial Markets Division
PV Rao : +230 202 1353
R. Soobroydoo : + 230 202 1633
E: [email protected]