• Insights


    News from our global and local partners

Daily Market Update 15th June 2016


02.45pm EUR France CPI MoM 0.4% 0.4%
04.30pm GBP ILO Unemployment Rate 3 Months 5.1% 5.1%

(Source: FabTrader)


  • US: Retail Sales rose more than expected to 0.5% MoM (Exp. 0.3%) led by a 1.3% jump in “non-store” sales which includes purchases from Internet retail companies such as Amazon.“Core” retail sales, i.e. excluding automobiles, gasoline, building materials and food services, and correspond most closely with the consumer spending component of GDP, rose 0.4% (Exp: +0.3%) from an upwardly revised 1.0% increase in April (Prev: +0.9%). Business Inventories expanded 0.1% in April, less than the 0.2% expected. Retail inventories ex-autos, which are used in the calculation of GDP, declined 0.2%, the largest drop in nearly a year. Prices for imported goods rose for a third month to 1.4% (Exp. 0.7%) and at their fastest pace in over four years during May as prices continued to strengthen for petroleum-related products and industrial supplies such as metals. 

  • CHINA: MSCI has decided to delay including Chinese domestic equities in its benchmark indices for now, citing the need for increased accessibility to the A-share market despite the improvements already and capital mobility and anti-competition concerns


CurrencyLast% ChangeOvernight Range
DXY 94.93 0.50% 94.396 – 95.025
EURUSD 1.121 -0.67% 1.1189 – 1.1289
USDJPY 106.06 0.06% 105.63 - 106.18
AUDUSD 0.7351 -0.69% 0.7331 – 0.7405
GBPUSD 1.4111 -0.39% 1.4091 - 1.419

(Source: FabTrader)


CurrencyPrice USD% ChangeOvernight Range
Gold 1285.55 0.23% 1276.27 - 1289.97
Silver 17.41 0.22% 17.2233 - 17.49
Oil (BRENT) 49.83 0.30% 49.5 – 50.05
Oil (WTI) 47.77 1.32% 48.02 – 49.69

(Source: Bloomberg and Saxo)


Gold: The rally in gold and silver is at risk  of turning around as the DXY traded higher to 95.14 overnight. The main resistance for Gold is at 1300

Oil: US Crude Oil traded in a narrow trading range as the market is waiting for the release of the US Crude Oil Inventory Data tonight. The IEA cut its oil surplus estimate for 2017, which was bullish for oil, but any advance was muted by the overall risk off sentiment in the markets.


Risk off continued overnight and USD rallied against all the currencies except GBP (See Below). All year long EUR has found very good offers in the range 1.14/1.15 and the risk of contagion surrounding the Brexit could push EUR lower even though the market will rush to buy EURGBP on a Britain exit. The next strong support level for EURUSD is at 1.1100.

The drop of base metals due to risk off is pushing AUD lower. NZD dropped beack below the 0.7000 level that should serve as a resistance. Following the big stops of long AUDNZD and a drop to 1.04, the pair managed to bounce back and with a much cleaner positioning should rally back quickly toward the old ranges and the support of 1.0600.

USDCNH is confirming a break above 6.6000 and nothing seems to stop it now for a move much higher. The forward points are finding some supports in the long end. 1yr trades at +1350

Asian Shares slip as Fed, Brexit loom

European equity index futures rallied and most Asian shares rose as the British pound rebounded ahead of the Federal Reserve’s policy review. The yuan traded near a five-year low after MSCI Inc. decided to keep Chinese equities out of its benchmark indexes.
The MSCI Asia Pacific Index halted a four-day losing streak, helping bring an end to the steepest selloff in global stocks since January. Shares in Shanghai reversed earlier losses, spurring speculation state-backed funds were supporting prices, and Japan’s Topix climbed from a two-month low. The British pound strengthened, after sliding more than 1 percent in two of the last three trading sessions, and the yen retreated from its strongest level since 2014. Crude broke below $48 a barrel after a report showed U.S. stockpiles increased, while copper rose. Japanese bond yields plumbed new lows.
About $2.5 trillion was wiped off the value of global equities in the past week and the pound tumbled as a slew of polls showed growing support for Britain to leave the European Union ahead of a June 23 referendum. The vote is making investors wary before central banks in the U.S., Japan and the U.K. review monetary policy this week. MSCI, whose emerging-markets index is tracked by some $1.5 trillion of funds, said more improvement in access to China’s stock market was needed before the nation’s equities can be added to its benchmarks.
“While we get a bounce following the huge knockdown across markets, investors should probably sell into the strength ahead of the Brexit vote,” said Nicholas Teo, a trading strategist at KGI Fraser Securities Pte in Singapore. “There’s a lot of uncertainties out there. A statement from the Fed tonight may help calm the market, but concerns remain on the timing of the rate hike.”
The Fed is expected to keep the benchmark lending rate unchanged when its two-day policy meeting concludes in Washington, though the central bank’s statement and Chair Janet Yellen’s comments at a press briefing will be scrutinized for clues on the likely timing of the next increase. Futures indicate the odds of a move by July tumbled to 16 percent from 53 percent since the start of this month, damped by weak U.S. payrolls data and turbulence in global financial markets.

The yuan fell as much as 0.1 percent to a five-year low of 6.6047 a dollar in Shanghai, before trading little changed at 6.5928.
The pound strengthened 0.4 percent to $1.4166. It slid 1.1 percent on Tuesday after five opinion polls in two days put the ‘Leave’ campaign ahead of ‘Remain’ in the run-up to the EU vote and as Britain’s best-selling newspaper, The Sun, backed a withdrawal. The amount wagered on the currency falling to $1.35 or lower -- levels last seen in the 1980s -- after the referendum has more than doubled during the past three months.
The yen weakened 0.2 percent to 106.29 per dollar, after rallying almost 1 percent over the past three sessions. It touched 105.55 on May 3, the strongest level since October 2014.

West Texas Intermediate crude slipped 1.3 percent to $47.85 a barrel, falling for a fifth day. Concern over a global glut in the commodity reemerged with the American Petroleum Institute reporting a 1.16 million-barrel increase in U.S. oil inventories for last week. Nigerian militants, whose attacks on oil infrastructure have sent the country’s output plunging to its lowest level in 27 years, also said for the first time they are considering peace talks.
Copper rose 1.1 percent in London, while nickel advanced for the first time in a week. Gold was little changed, after surging 3.4 percent over the last five days. (Source: bloomberg.com)


Be invited to your account today

Contact Us

Email Us
T: +233 209 532244 (Head Office)
T: +60 320 261 151 (Marketing Office)

Follow Us on

Fab uses cookies on our website to provide the most effective user experience possible. For more details about cookies and how to manage them please refer to our Cookie policy.