Foreign Exchange (FX)

Treasury Market Update Ma
Foreign Exchange (FX)
Latest Market News
> The Yen advanced to a 4 week high trading at 116.40/dlr after data showed that
Japanese exports rose 4.90 percent in November.
> The Single currency strengthened against the Greenback trading as high as $ 1.2565
after the release of Euro Zone Manufacturing PMI which rose to 50.8 in December
from 50.1 in November while the German manufacturing PMI rose to 51.2 in December from 49.5. Focus is now on the conclusion of the US Federal Reserve policy
meeting later today.
> Sentiment in the market remains jittery after the Russian rouble hit historic
lows as the economy falters with the collapse in oil prices.
> The Cable initially edged lower to $ 1.5610 after the release of worse than expected inflation data in the UK. However, the Pound rallied in tandem with Euro to
$ 1.5785 in New York session.
> Against the MUR, the USD and AUD shed 4 and 26 cents respectively while the
EUR, JPY and GBP gain 6, 9 and 15 cents respectively.
On the hand, the ZAR opens unchanged trading at Rs 2.74 on the local market.
> The Aussie nose dived to USD 0.8150 on concern over falling prices of oil.
Daily Technical View
EUR/USD: EURUSD made the predicted move, after breaking the 1.2470 resistance it went up to 1.2569 before a drop to 1.2476. Expecting the market to trade around
1.2490 as 1.2470 has turned into a support for a rise to 1.2540. A move below 1.2465 will prepare the market for a move down to 1.2350.
Mauritian Rupee (Indicative Spot Rates)
Buying
Today
Previous
AUD
24.84
EUR
GBP
Change
Mauritian Rupee (Indicative Forward Rates)
Selling
USD/MUR
Previous
Buy
Sell
Buy
Sell
25.07
26.06
26.32
1 month
31.000
31.944
38.628
39.835
38.60
38.54
39.75
39.69
48.59
48.44
50.04
49.89
2 month
3 month
31.030
31.060
32.031
32.133
38.663
38.704
39.948
40.083
6 month
31.140
32.481
38.887
40.563
JPY
25.98
25.91
27.36
27.28
USD
30.94
30.98
31.87
31.91
ZAR
2.60
2.60
2.74
2.74
Change
EUR/MUR
Today
Spot Rates - Rolling Five Day Chart (Mid-rates)
1.2550
31.56
1.5790
Latest Bid - Ask
1.2489 - 1.2492
1.2520
USD/MUR
GBP/USD
EUR/USD
Latest Bid - Ask:
1.5730 - 1.5735
1.5760
1.2494
31.53
1.5730
1.2490
1.5730
1.2460
1.5700
1.2430
1.5670
1.2400
1.5640
1.2370
1.5610
31.50
31.47
31.44
31.41
31.41
31.38
31.35
1.5580
1.2340
11-Dec
12-Dec
15 De c
16 De c
11-Dec
17 De c
12-Dec
Market Highlights (v/s USD)
New York
15 De c
16 De c
11-Dec
17 De c
12-Dec
15 De c
16 De c
17 De c
Renminbi Focus (Indicative rates)
Far East
Latest
CNY/MUR
Buy
USD/CNY
Sell
Buy
Sell
4.89
5.14
6.196
6.198
4.892
5.144
6.220
6.223
5.164
6.261
6.264
Low
High
Low
High
Low
High
AUD*
0.8203
0.8272
0.8152
0.8235
0.8152
0.8235
Spot
GBP*
EUR*
1.5618
1.2436
1.5785
1.2569
1.5717
1.2487
1.5756
1.2515
1.5717
1.2487
1.5756
1.2515
1 month
3 month
4.872
CHF
0.9555
0.9656
0.9596
0.9617
0.9596
0.9617
JPY
115.58
118.00
116.32
117.11
116.32
117.11
* AUD, GBP and EUR are the base currencies
Today’s Major Announcements (at GMT)
09 00 : UK - BoE Minutes
10 00 : EU - CPI
13 30 : US - CPI
19 00 : US - Fed Interest rate decision
This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as an offer,
solicitation, or recommendation to buy or sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg.com, FT.com, GBOT, CME, and Bank of Mauritius
17th December 2014
*Previous trading prices
Treasury Market Update Ma
earn
Fixed Income (FI)
Latest Market News
Local Market:
International Market:
> In the auction for 91 Day Treasury bills on Friday, the Bank of Mauritius accepted a
total amount of MUR 800 million at the weighted average yield of 2.21 percent..
> With the Russian rouble shedding more than 11 percent yesterday despite the
rise in interest rates by the Central Bank, the market will be watching whether the
country will be selling its gold holdings to finance its spending.
> The market was oversubscribed with total bids amounting to MUR 1, 465 million.
However, yields on the bills have reversed their downward trend with highest bid at
4.50 while the Bank of Mauritius accepted the highest bid at 2.52 percent.
> Amid a wave of safe haven bids, yields on 30 year US Treasuries traded lower
yesterday as the Dow Jones Industrial average and Standard & Poor's 500 index
turned negative, wiping out their earlier rebound.
> With the European Central Bank downgrading its growth and inflation forecast,
US 10-year Treasury notes outperformed German bunds but the yield premium
narrowed to 1.49 percent this morning from 1.54 percent yesterday.
Money & Swap Markets
Government Benchmark Bond Yields
Local Secondary Market Rates
Yield at which we
Days to maturity
Buy (%)
Sell (%)
91 to 135
2.45
2.25
136 to 180
2.50
2.30
181 to 240
2.55
2.35
241 to 300
2.60
2.40
301 to 364
2.65
2.45
International Markets Rates
1 Week
1 Month
3 Month
6 Month
EUR
-0.045%
0.012%
0.061%
0.149%
USD
0.131%
0.162%
0.243%
0.340%
GBP
0.477%
0.501%
0.559%
0.680%
EURIBOR
-0.020%
0.024%
0.082%
0.178%
2 Year
5 Year
10 Year
US Bonds
0.554
1.519
2.058
UK Bonds
0.455
1.186
1.770
German Bonds
-0.072
0.071
0.596
Change in LIBOR (Today v/s Previous)
LIBOR:
EUR
USD
0.004
0.002
Indicative Generic Swap Rates*
0.000
Tenor
2yr
5yr
7yr
10yr
12yr
15yr
-0.002
EURIBOR - 3m
0.114%
0.278%
0.452%
0.752%
0.919%
1.101%
-0.004
USD LIBOR - 3m
0.798%
1.667%
1.927%
2.203%
2.324%
2.425%
-0.006
1 Week
*Pay fixed and receive floating swap
1 Month
3 Month
6 Month
Key Interest Rates
Cycle
% per annum
Current level
View & Start date
Level
Last Move
Next Exp Move
4.65
Easing: 28 Sept 08
8.25
June 13 (-0.25)
Q1 2015
Feds fund rate
0 - 0.25
Easing: 17 Sept 07
5.25
Dec 08 (-0.75 -1.00)
Q2 2015
BOE bank rate
0.50
Easing: 6 Dec 07
5.75
Mar 09 (-0.25)
Q3 2015
ECB refinancing rate
0.15
Easing: 5 June 14
1.00
Jun 14 (-0.10)
Q1 2015
China: Working capital rate
5.60
Easing: 22 Nov 14
5.31
Nov 14 (-0.40)
Q1 2015
India: Repo rate
8.00
Tightening: 19 Mar 10
4.75
Jan 14 (+0.25)
Q1 2015
BOM Repo rate
This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as
an offer, solicitation, or recommendation to buy or sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg.com, FT.com, GBOT, CME, and Bank of Mauritius
th
*Previous trading prices
17 December 2014
Treasury Market Update Ma
earn
Commodities
Latest Market News
> With sentiment in the oil market being bearish, Gulf OPEC producers have signaled
this week that they are prepared to wait for another 6 months before intervening in
the oil market.
> Spot gold is trading just shy of the psychological level of $1200 an ounce as investors
are awaiting the outcome of the US Federal Reserve policy meeting this evening.
> U.S. gold for February delivery rose 0.3 percent to $1,198 an ounce.
> Brent for February delivery was down 56 cents at $59.45 a barrel this morning,
having touched a session low of $58.50 in the session yesterday, the lowest since
May 2009, and has plunged 50 percent since June, when it was traded above $115.
> U.S. light crude for January delivery dropped 97 cents to $54.96 a barrel after touching the lowest since May 2009 at $53.60 yesterday.
Spot & Futures Markets (in USD)
Today
Spot Market
Previous
59.39
54.95
60.81
55.59
ICE
CME
59.34
54.82
60.62
55.64
1198.20
1196.80
1197.30
1198.30
15.88
16.23
15.87
16.20
2.88
2.89
COMEX
COMEX
CME
2.86
2.88
Change
Source
Futures Market
Today
Previous
Change
Energy:
- Brent Crude Oil
- WTI Crude Oil
Metals:
- Gold
- Silver
- Copper
Oil & Gold Focus
Rolling Five Day Gold & Oil Prices
Gold Pr ice (LHS)
Bullish/Bearish Indicator†
Oil Pr ice (RHS)
69.0
20.80
1241
67.5
20.40
66.0
64.5
1225
63.0
1217
61.5
59.39
1209
60.0
58.5
1201
1198.2
1193
20.18
20.00
Oil Price (USD)
Gold Price (USD)
1233
19.60
19.20
18.80
57.0
18.40
55.5
1185
54.0
11 Dec
12 Dec
Contact Us:
15 Dec
16 Dec
17 Dec
18.00
11 Dec
12 Dec
15 Dec
16 Dec
17 Dec
† Ratio of spot gold price (proxy for financial markets) to spot oil price (proxy for real economy), with a
high ratio indicating that financial markets are bearish and vice-versa
[email protected]
This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as
an offer, solicitation, or recommendation to buy or sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg.com, FT.com, GBOT, CME, and Bank of Mauritius
th
*Previous trading prices
17 December 2014

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