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GMC GROUP FOR INDUSTRIAL COMME   1.29        Telecom Egypt   11.48        Ismailia Misr Poultry   2.45        El Arabia for Investment & Dev   0.34        Modern Company For Water Proof   1.03        Egyptian Real Estate Group   6.85        Pioneers Holding   2.84        Ezz Steel   7.86        Rakta Paper Manufacturing   4.39        Orascom Telecom Holding (OT)   3.92        Naeem Holding   0.19        Egyptian Iron & Steel   6.87        Universal For Paper and Packag   4.94        Northern Upper Egypt Developme   4.93        Canal Shipping Agencies   7.39        Misr Chemical Industries   5.65        Egyptians Housing Development    1.94        United Arab Shipping   0.43        Egyptian for Tourism Resorts   0.69        Modern Shorouk Printing & Pack   7        Upper Egypt Contracting   0.8        Egyptian Financial Group-Herme   7.42        Orascom Construction Industrie   240.82        Heliopolis Housing   21.65        Raya Holding For Technology An   4.57        United Housing & Development   8.93        International Agricultural Pro   2.1        Gulf Canadian Real Estate Inve   18.08        Alexandria Pharmaceuticals   45.71        Arab Cotton Ginning   2.46        Egyptian Chemical Industries (   7.26        National Real Estate Bank for    11.84        Six of October Development & I   15.03        National Development Bank   6.72        Oriental Weavers   20.66        Arab Gathering Investment   16.29        Egyptians Abroad for Investmen   2.75        Palm Hills Development Company   1.61        Credit Agricole Egypt   9.04        Remco for Touristic Villages C   2.13        Commercial International Bank    29.87        El Ezz Porcelain (Gemma)   1.9        Egyptian Starch & Glucose   5.4        Arab Real Estate Investment (A   0.41        South Valley Cement   3.12        Citadel Capital - Common Share   2.5        Union National Bank - Egypt "    3.25        Ceramic & Porcelain   2.88        Rowad Tourism (Al Rowad)   5.05        El Nasr Transformers (El Maco)   4.78        Egyptian Media Production City   2.31        GB AUTO   27        Egyptian Transport (EGYTRANS)   7.85        Sharkia National Food   3.78        El Kahera Housing   4.97        El Shams Housing & Urbanizatio   2.45        Egyptian Kuwaiti Holding   0.7        ARAB POLVARA SPINNING & WEAVIN   2.11        Cairo Poultry   8.32        Egyptian Financial & Industria   8        T M G Holding   4.03        Asek Company for Mining - Asco   10.66        Misr Hotels   27        Egyptian Electrical Cables   0.56        Medinet Nasr Housing   22.51        Mena Touristic & Real Estate I   1.21        ELSWEDY CABLES   18        Prime Holding   0.91        Al Arafa Investment And Consul   0.17        Alexandria Spinning & Weaving    0.74        Gharbia Islamic Housing Develo   8.41        General Company For Land Recla   16.6        Alexandria Cement   8.9        Arab Valves Company   0.94        Sidi Kerir Petrochemicals   12.4        TransOceans Tours   0.09        Egyptian for Developing Buildi   6.43        Egyptian Gulf Bank   1.24        Kafr El Zayat Pesticides   18.19        Faisal Islamic Bank of Egypt -   35.1        National company for maize pro   11.86        Delta Construction & Rebuildin   4.03        Zahraa Maadi Investment & Deve   48.25        Samad Misr -EGYFERT   3.52        Egypt for Poultry   1.41        Cairo Development and Investme   11.7        Cairo Pharmaceuticals   20.1        Maridive & oil services   0.9        Suez Canal Bank   3.75        Nile Pharmaceuticals   15.81        The Arab Dairy Products Co. AR   73.85        National Housing for Professio   14.39        El Ahli Investment and Develop   4.87        Egyptian Saudi Finance Bank   10.79        Ismailia National Food Industr   5.16        National Societe Generale Bank   25.52        Acrow Misr   19.16        Alexandria Mineral Oils Compan   63.63        Paper Middle East (Simo)   5.59        Egypt Aluminum   12.31        Giza General Contracting   13.12        Middle Egypt Flour Mills   5.82        Extracted Oils   0.6        Assiut Islamic Trading   4.56        Engineering Industries (ICON)   3.95        North Cairo Mills   15.3        Arab Pharmaceuticals   11.88        Grand Capital   5.38        El Ahram Co. For Printing And    10.68        Minapharm Pharmaceuticals   25.49        El Arabia Engineering Industri   13.52        El Nasr For Manufacturing Agri   9.71        Naeem portfolio and fund Manag   1.7        Faisal Islamic Bank of Egypt -   6.76        Natural Gas & Mining Project (   68.26        Housing & Development Bank   13.95        East Delta Flour Mills   31.5        Orascom Development Holding (A   3.22        Memphis Pharmaceuticals   11.12        Abou Kir Fertilizers   134.23        Delta Insurance   5        Cairo Investment & Real Estate   12.18        Cairo Oils & Soap   12.98        Egyptian Arabian (cmar) Securi   0.36        Egyptian Real Estate Group Bea   15.56        Alexandria Containers and good   85.51        Upper Egypt Flour Mills   45.78        Development & Engineering Cons   9.94        Sinai Cement   15.18        Medical Union Pharmaceuticals   28.01        Torah Cement   24.2        Alexandria New Medical Center   46.55        Export Development Bank of Egy   5.04        Egyptian Company for Mobile Se   92.02        Middle & West Delta Flour Mill   32.7        El Kahera El Watania Investmen   4.18        Mansourah Poultry   12.41        Delta Sugar   11.04        Misr Beni Suef Cement   41.21        Egyptian Satellites (NileSat)   6.14        Cairo Educational Services   17.75        Lecico Egypt   7.55        Sharm Dreams Co. for Tourism I   5.3        General Silos & Storage   10.77        Al Moasher for Programming and   0.66        UTOPIA   5.28        Arab Ceramics (Aracemco)   25.4        Barbary Investment Group ( BIG   0.98        


The Watch - forex news

Amwal Al Ghad English - 2016-03-21 08:33:39
The safe-haven yen was broadly firmer on Monday, particularly against its New Zealand and Australian peers, as the mood turned sour with most Asian share markets down. The U.S. dollar and euro both eased 0.2 percent, to 111.35 yen JPY= and 125.59 yen EURJPY=R respectively. The kiwi NZDJPY=R shed 0.6 percent to 75.34 yen and the Aussie AUDJPY=R lost 0.4 percent to 84.43 yen. Traders said a further dip in crude oil prices CLc1, which turned around from 2016 peaks on Friday, cast a shadow on risk appetites. "It is an extension of a slightly cooler mood overall," said Sean Callow, senior currency strategist at Westpac Bank. The euro was little changed against the U.S. dollar at $1.1276 EUR= as investors waited for European markets to open. A public holiday in Japan and an absence of fresh drivers meant there was no conviction to push the market either way. Sterling was a notable underperformer after British Prime Minister David Cameron was forced into a hasty cabinet reshuffle on Saturday following the shock resignation of a senior minister. The pound was marked as far down as $1.4430 GBP=D4, but has since returned to $1.4447, or 0.2 percent lower on the day. All that left the dollar index .DXY little changed at 95.062, not far from a five-month trough of 94.578 set on Friday. Dollar bulls were hit hard after the Fed last week held interest rates steady and cut in half the number of projected quarter-point hikes to just two this year. Fed Chair Janet Yellen also sounded doubtful that a recent firming in U.S. inflation would be sustained, suggesting the central bank is in no hurry to tighten policy. Euro bulls were not spared either. European Central Bank (ECB) chief economist Peter Praet on Friday said rates have not reached their lower limit yet. His comments came a week after ECB President Mario Draghi upset the market by saying he did not expect further rate cuts were needed after unveiling a fresh set of stimulus. That saw the euro rebound from a low around $1.0821. More»
Amwal Al Ghad English - 2016-03-21 08:06:26
Crude oil slid for a second session on Monday, falling further from last week's 2016 highs on concerns over a supply glut after the U.S rig count rose for the first time since December. U.S. energy firms last week added one oil rig after 12 weeks of cuts, according to data by industry firm Baker Hughes. The addition, coming after oil rigs had fallen by two-thirds over the past year to 2009 lows, showed the fall in crude drilling stabilizing after a 50-percent price rally since February. [RIG/U] U.S. crude CLc1 dropped 67 cents, or 1.7 percent, to $38.77 a barrel by 0617 GMT. The market on Friday climbed to $41.20 a barrel, its highest since early December, before losing ground to settle down nearly 2 percent at $39.44. Brent crude's front-month contract LCOc1 was down 33 cents at $40.87. It hit a high of $42.54 a barrel in the last session. "The rebound in crude oil prices in the last month appears to have stabilized the number of rigs at work in the U.S. shale sector," ANZ said in a note to clients. "After falling for six consecutive months, Baker Hughes data showed U.S. oil rig counts increased by one to 387." Global oversupply in oil had knocked crude prices down from mid-2014 highs above $100 a barrel to 12-year lows earlier this year, taking Brent to around $27 and U.S. crude to about $26. The combination of declining oil output, smaller crude stockpile builds and surging gasoline consumption in the United States helped the recovery. Prices have also rallied over the last two months after the Organization of the Petroleum Exporting Countries (OPEC) floated the idea of a production freeze at January's levels. But the market is looking for more news on this step. "Markets want to see a little more back up as to what is happening there," said Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney. "The fact is we haven't heard anything after that ... but really it is Monday trading, maybe it will come up little bit later." The average price of a gallon of gasoline in the United States gained nearly 25 cents in the past four weeks, according to a survey released on Sunday. Money managers raised bullish bets on U.S. crude to a five-month high, data showed on Friday. More»
Amwal Al Ghad English - 2016-03-19 15:25:50
US-based financial services firm, JP Morgan forecasts that the Egyptian pound will be devalued by 35 percent in 2016, it said in a report issued on 15 March. According to J.P Morgan, 35 percent reduction will be witnessed including 14 percent devaluation by the Central Bank of Egypt (CBE) on 13 March, in additional to further gradual moves. In the same path, the CBE’s Monetary Policy Committee (MPC) would increase the interest rates by 50 basis points as expected by JP Morgan. In addition, an annual inflation is also anticipated to accelerate to 14 percent amid the application of the value-added tax (VAT). The Egyptian government will finalize an International Monetary Fund (IMF) loan before the end of the fiscal year, as anticipated by the US financial firm. J.P. Morgan report interpreted the reduction policy as a prior step to the (IMF) loan despite denial of the Egyptian government, “Although government officials have denied any IMF negotiations, we believe reduced availability of financial support will likely accelerate IMF talks during the IMF/World Bank meetings in April,” the report said. This makes it appear that an IMF loan is looming for Egypt. The timing of the “floating” decision is significant; it came days after the IMF delegation visited Cairo with discussions about the exchange rate and monetary policies. The IMF has made it clear more than once that it is ready to engage with Egypt once it shows more commitment to the fund’s financial reforms programme. JPMorgan said that “it expected Egypt to agree with the IMF on a loan programme before the end of the fiscal year in June”. The report described it as a politically difficult step for the government; as when the IMF and the World Bank lend money it comes with tough conditions. For Egypt, the currency devaluation will be one of these conditions as well as privatization, sharp austerity measures – such as cutting subsidies for goods and services – and reducing the wage bill for civil servants. This clearly justifies what was stated by the Egyptian Prime Minister Sherif Ismail that the government will soon announce “tough economic measures”. This means more measures are heading to attack the Egyptian society that is already suffering since the military coup in 2013. However, the IMF loan would unlock multilateral support with a continuous reduction in the deficit in Egypt’s balance of payment as a result of a growing trade deficit, and a decline in foreign direct investment (FDI) and support from the Gulf. In the same context, the CBE’s Tarek Amer previously said the government would consider floating the Egyptian pound when the foreign reserves reach $25-30 billion. The Central Bank Egypt -under Tarek Amer administration- adopted a conservative policy sailing against tides in dealing with dollar crisis by announcing exchange rates that have no connection with reality. The first decision, taken by Tarek Amer after taking office, was raising the value of the Egyptian pound by 20 piasters against the US dollar. A decision that was not based on economic grounds and it was attacked by economists and businessmen as it does not reflect the reality. On the other hand, the black market had another path while Amer exploited millions of dollars under the preserving pound policy through the central bank’s weekly auctions .Then finally due to the continuous withdrawal in the dollar resources, he resorted to meeting with the exchange firms to agree on a black market price that does not exceed 9.25 pounds per dollar. After the Central Bank decision to devalue the Egyptian pound, 112 piasters by 14.5% which had its impact on the black market contrary to the central bank calculations that aimed to bring the two prices close together, the devaluation of the Egyptian currency won’t stop at this point; as it’s expected to continue declining against the US dollar and other currencies. The reason behind the economic problem in Egypt lies in the hands of the economic policy maker governing Egypt since the military coup in 2013. The devaluation of the Egyptian currency can’t be resolved while the Egyptian government failed to find solutions for the high poverty rates with 26 percent of the Egyptian population and the unemployment of 4 million Egyptians. The inflation rates exceeded 12 percent with continuous deficit in trade balance with 40 billion dollars annually, in addition to the budget deficit that reached 36 billion dollars that won’t change except if the government focuses on the production activities. The consequences of the devaluation of the Egyptian pound will have negative results on the Egyptian economy that is already suffering from the withdrawal of dollar inputs coming from various resources as the exported commodities, petroleum, the Suez Canal, tourism, or remittances from the Egyptians working abroad. As a result, the government will have no choice but waiting for more devaluation of the Egyptian currency as it won’t achieve the accurate balance between the dollar demand and supply. For example, the quick devaluation of the Egyptian currency by 14.5 percent will have its repercussions on the prices of imports which will lead to what is known as the imported inflation. On the other hand, there will be an increase in the production costs in Egypt due to dependence on the imported foreign equipment; as a result, the Egyptian society is waiting for a tsunami wave of inflation that would reach more than 20%. In addition, the general budget will carry many burdens to cover up the deficit resulted from the rise in dollar price. On the other side, the external debt will widen due to the devaluation of the Egyptian currency. In fact, the total floating any currency is not found in reality but there is what is called the directed floating that is adopted by America and other capitalist states, and this is the case in the Egyptian reality. The Egyptian economic crisis is in a very critical condition due to the continuous internal economic deterioration that makes it difficult for the Egyptian currency to remain stable without further reduction and its floating value will rise based on this process. There is no doubt that the coming period will be one of the toughest period in the Egyptian economic history. More»
Amwal Al Ghad English - 2016-03-19 13:32:25
The dollar edged higher in light trade Friday as investors bought back greenbacks ahead of the weekend following a precipitous selloff earlier in the week. The ICE U.S. Dollar index DXY, +0.30% a measure of the dollar’s strength against a basket of six rival currencies, rose 0.2% to 95.0860 in recent trading. It has fallen 1.3% so far this week as investors priced in a new set of Fed projections for the expected path of interest-rate hikes. “The big events of the week are pretty much behind us so we’re not seeing much activity today,” said Sireen Harajli, currency and rates strategist at Mizuho. After strengthening against its rivals earlier in the week, the dollar turned sharply lower on Wednesday when the Federal Reserve halved its projection for interest rate hikes in 2016 to two from an earlier estimate for four. The prospect that rates might remain lower for longer can make currencies less attractive to traders. Unfortunately for dollar bulls, Friday’s gains weren’t enough to erase the buck’s decline from earlier in the week. It was on track to log its third straight weekly loss against the euro, and to post its largest weekly drop against the yen in a month. The loonie soarsTrading in G-10 currencies was relatively muted on Friday. One notable exception was the Canadian dollar, which jumped to a five-month high against its U.S. rival after a reading on retail-sales growth in January showed a sharp rebound from the prior month. The loonie CADUSD, -0.2230% traded as high as 76.88 cents, extending its monthly gain against the dollar to 4.3%. It traded at 77.03 late Thursday in New York. It finished the week up 1.8%. Canadian retail sales rose 2% in January after a decline of 2% in December. The Canadian currency is up 4.3% against its U.S. rival so far this month, benefiting from a recovery in energy prices and the Bank of Canada’s decision to keep interest rates on hold. Euro weakens on comments from ECB economistIn other currency trading, the euro EURUSD, -0.4417% weakened Friday after ECB Chief Economist Peter Praet said eurozone interest rates could go lower in an interview with the Italian newspaper la Repubblica. Last week, European Central Bank President Mario Draghi said during a news conference that he didn’t expect any further cuts to the ECB’s deposit rate, sparking a sharp rally in the euro. The shared currency bought $1.1270 Friday, compared with $1.1319 late Thursday in New York, logging a 1.1% weekly gain. In other currency trading, the dollar USDJPY, +0.15% strengthened to ¥111.54, compared with ¥111.30 Thursday, but for the week the dollar lost 2% against the yen. The pound GBPUSD, -0.0345% was relatively unchanged at $1.4476. More»
Amwal Al Ghad English - 2016-03-19 08:31:00
The dollar rose against most major currencies on Friday, recovering from a five-month low, as traders exited short positions after two straight days of selling in the wake of the Federal Reserve's cautious view on global market developments. The dollar index .DXY, which measures the greenback against six major currencies, was up 0.4 percent but analysts said doubt remained that the U.S. currency would regain its footing in the near term. It was down by just over 1 percent for the week, marking the third straight week of losses for the index. The dollar rose 0.3 percent to 111.75 yen JPY= on Friday, moving further from a 17-month low on Thursday of 110.65. For the week, the dollar shed nearly 2 percent against the yen, its steepest fall against the Japanese currency in five weeks. UBS lowered its short-term forecasts for dollar-yen, moving its three- and six-month targets lower. "With the Fed reaffirming its caution in hiking rates, we expect a more gradual recovery of the USDJPY pair," the UBS analysts said in the note. The euro retreated from a five-week high of $1.1342 EUR=, falling 0.45 percent against the dollar to $1.1265. It was up just over 1 percent for the week. "We obviously had this very, very strong reaction after the Fed," said Axel Merk, president and portfolio manager at Merk Hard Currency Fund in Palo Alto, California. As for Friday's action, it was largely "just a squaring of positions at the end of the week," Merk added. "It's Friday. That's the biggest driver here." The dollar also managed to rebound from earlier lows against a number of emerging market currencies on Friday, after falling in earlier trading. The dollar rose against the oil-linked Mexican peso MXN= and Russian ruble RUB=, gaining 0.2 percent and 0.25 percent respectively. The dollar gained 0.1 percent against the Colombian COP= peso. Despite Friday's gains, the dollar was down for the week against all three currencies and remained at or near lows for the year. The potential of further dollar weakness, along with more accommodative moves from the European Central Bank and Bank of Japan, which both hold negative interest rates, has been a boon for emerging markets so far this year, said Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman in New York. A weaker dollar benefits emerging market currencies because it lowers the price of commodities like oil, coffee and metals, increasing those countries' profits from exports. More»
Amwal Al Ghad English - 2016-03-19 08:21:32
Crude prices settled lower on Friday after the U.S oil rig count rose for the first time since December, renewing worries of a supply glut after an output freeze plan helped boost the market to 2016 highs and multi-week gains. U.S. energy firms this week added one oil rig after 12 weeks of cuts, according to data by industry firm Baker Hughes. The addition, coming after oil rigs had fallen by two-thirds over the past year to 2009 lows, showed crude drilling picking up again after a 50 percent price rally since February. [RIG/U] "The rig count and crude prices have a direct relationship for sure," said Pete Donovan, broker at Liquidity Energy in New York. Brent crude LCOc1 finished down 34 cents, or 0.8 percent, at $41.20 a barrel, having risen $1 earlier to a 2016 high of $42.54. U.S. crude CLc1 settled down 76 cents, or 1.9 percent, at $39.44, after also gaining $1 to a year high of $41.20. Despite the retreat, oil posted multi-week gains, with Brent up for a fourth straight week and U.S. crude a fifth week in a row. Both benchmarks rose about 2 percent this week. More»
Amwal Al Ghad English - 2016-03-17 09:43:56
Egypt's decision to make the exchange rate more flexible will return the central bank to the managed float in use before the 2011 uprising sent foreign investors and tourists packing, economists and bankers said. Egypt devalued the pound by 13 percent on Monday and said it would move to a more flexible exchange rate system, without giving details. Amid concern that the devaluation would fuel inflation, the central bank said it would do everything in its power to maintain price stability. Tellingly, it promised to maintain order, not stability, in the exchange rate. Economists and bankers expect the central bank to return to a managed float, allowing the pound to fluctuate daily within a limited range depending on market conditions. Though it supplied $1.5 billion to banks on Wednesday at a stronger rate of 8.78 pounds to clear a backlog of credit, they said the central bank would let the pound move in a weaker trajectory overall towards 9-9.50 per dollar. "It is very likely that they will go back to a system they know, a system that prevailed prior to 2011," said Mohsin Khan, former Middle East and Central Asia director at the IMF and senior fellow at Atlantic Council. "I have always said (that system) was more managed than floating and I would say you (should) change the weighting and go more floating and less managed." WINNING BACK TRUST Egypt's pound was mostly pegged to the dollar until January 2003, when a free float was announced. The central bank created an interbank foreign exchange market, intervening heavily through two market-maker banks to keep the currency within comfortable parameters. Forex markets cleared daily, however, allowing flexibility that kept the market closer to balance. But as foreign reserves tumbled after the 2011 uprising that ended Hosni Mubarak's 30-year-rule, Egypt's currency came under pressure. The central bank allowed incremental devaluations, then began to ration dollars at formal auctions that it used to set the exchange rate. As imbalances grew, so did the black market. In 2015, it imposed caps on the deposit and withdrawal of forex, while letting the pound gradually weaken some 10 percent. But the caps exacerbated the forex shortage, undermined the confidence of foreign investors who could no longer repatriate their earnings and made it harder to clear imports at ports. When Tarek Amer became central bank governor in November, he set about gradually easing the caps and moving to narrow the trade deficit. But economists said Monday's devaluation was not enough to win back investors' trust and called for the central bank to end its forex auctions and return to the interbank system. "It is critical that the new regime re-establish confidence in the convertibility of the Egyptian pound. There has to be a market where prices adjust to a point where the pound can be bought and sold on demand," said Simon Williams, central and eastern Europe, Middle East and Africa chief economist at HSBC. "The central bank may intervene to limit volatility, but the market has to be allowed to set the market clearing rate." TWO-PHASE FLOAT? Egypt's foreign reserves rose in the decade leading up to the 2011 uprising, reaching a record $36 billion and allowing the central bank to comfortably manage the exchange rate. With reserves at $16.5 billion in February, barely enough for three months of imports, it no longer has that luxury. For many bankers and economists, the question is whether the central bank can stay the course without a major forex injection. Amer said last month he would not float the pound unless foreign reserves reached $25 billion. The central bank said on Monday it expected to reach that figure by year end, but did not say how. Several bankers told Reuters that banks which received dollars at the exceptional $1.5 billion sale on Wednesday were requested to deposit the same amount back at the central bank, in a process Khan described as window-dressing. Trying to lure back foreign currency, Egypt has introduced instruments from diaspora bonds to forex hedging options on local treasuries. But it is not yet clear how such offerings will be received. Hany Genena, head of research at Beltone Financial, was among the few economists who foresaw an impending float and predicted the long-awaited devaluation would take place this week. He said the central bank would probably move to a managed float in two phases. First, it would clear the backlog among importers who had letters of credit at the old exchange rate and were now turning to the black market for cover. Then it would return to the interbank system and allow the rate to fluctuate daily. "So he's taking pressure off the parallel market and then he will gauge the inflows and then he can float freely with a 10 or 20 piaster change every day and no one is going to speculate against that," Genena said. "If they get more money into the reserves they will relax more." More»
Amwal Al Ghad English - 2016-03-17 07:53:05
Oil futures extended strong gains on Thursday, continuing to gather support after the world's biggest suppliers firmed up plans to meet to discuss an output freeze. Oil producers including Gulf OPEC members support holding talks next month on a deal to keep production at current levels, even if Iran declines to participate, OPEC sources said on Wednesday. A meeting would increase the likelihood of the first global supply deal in 15 years. U.S. crude CLc1 was up 65 cents at $39.11 a barrel at 0452 GMT, having earlier risen as high as $39.38. The contract settled up $2.12, or 5.8 percent, at $38.46 a barrel on Wednesday, erasing losses from the previous two trading days. Brent crude LCOc1 rose 38 cents to $40.71, after finishing up $1.59, or 4.1 percent, at $40.33 a barrel on Wednesday. "A smaller than expected gain in inventories in the U.S. also supported prices," ANZ said in a morning note. U.S. crude oil stocks rose last week to record highs for a fifth straight week, data from the Energy Information Administration showed on Wednesday. Crude inventories USOILC=ECJ increased 1.3 million barrels in the week to March 11 to 523.2 million, a much smaller build than the 3.4 million-barrel increase expected by analysts. The market is also rallying after a less hawkish U.S. monetary outlook, as the U.S. Federal Reserve held interest rates steady and indicated two rate hikes this year instead of the four expected. Qatari oil minister Mohammed Bin Saleh Al-Sada said producers from within and outside the Organization of the Petroleum Exporting Countries (OPEC) will meet in Doha on April 17 to discuss plans for a freeze in output. The initiative was supported by around 15 OPEC and non-OPEC producers, accounting for about 73 percent of global oil production, the minister said. Since the freeze was first proposed last month, prices have recovered about 50 percent from decade-low levels but have been volatile without a firm date for a meeting. Phillip Futures said it remains skeptical that anything more than a production freeze would be agreed. "A production cut at this stage would likely be detrimental to the longer run," Phillip Futures analyst Daniel Ang said in a note. "The need to cut out the more expensive forms of production is necessary, and thus, a premature support in prices could reset what has been done over the past two years." More»
Amwal Al Ghad English - 2016-03-16 10:16:09
Ahead of the Egyptian central bank’s Wednesday exceptional foreign exchange auction, Arab and foreign currencies are in state of apprehension, slightly up at early trade against Egyptian pound. The table below demonstrates the exchange rates of a number of key Arab and foreign currencies against the Egyptian pound early Wednesday according to Egypt’s biggest state bank, National Bank of Egypt: More»
Amwal Al Ghad English - 2016-03-16 08:25:41
The dollar was in a holding pattern on Wednesday as markets waited for fresh guidance from the Federal Reserve, while a fall in dairy prices knocked the New Zealand currency broadly lower. The dollar index .DXY stood at 96.743, stuck in familiar territory since drifting off a one-month low of 95.938 set last Friday. The euro was little changed just above $1.1100 EUR=. No policy action is expected from the Fed, but the market will be hyper-sensitive to any guidance on when it might deliver its next hike in interest rates. Any signal that there is more than one hike in store this year will be positive for the greenback. Conversely, anything more dovish could keep the dollar pinned down. "The FOMC is the main game over the next 24 hours," analysts at ANZ wrote in a note to clients. "We retain the view that the next rate hike could come as early as June, and it would be reasonable to expect further increases in the second half of 2016. However, this outlook remains data dependent." A hawkish Fed could hurt stock and commodity prices, in which case safe-haven currencies such as the yen and the Swiss franc could gain on the dollar. The yen eased slightly in Asia but held on to much of the gains it made after surprisingly weak U.S. retail sales data on Tuesday briefly unsettled the dollar. The dollar fetched 113.14 yen JPY=, up 0.2 percent on the day but still down 0.4 percent so far this week. The euro bought 125.91 yen EURJPY=R, after having slipped to as low as 125.10 yen on Tuesday. The Bank of Japan on Tuesday skipped a chance to expand its massive asset-buying program even as it offered a bleaker view of the economy. Some traders said that the combination cast a shadow on risk sentiment, which perversely bolstered demand for the safe-haven yen. Speculation is also rising that Prime Minister Shinzo Abe may delay a planned tax hike next year, as he organizes a series of meetings with renowned economists who advocate fiscal spending. On Wednesday U.S. economist Nobel laureate Joseph Stiglitz said he had advised Abe to delay the tax increase and focus more on fiscal spending. "There's some uncertainty on how the currency market will react to a tax hike delay. But I think there's chance it would be regarded as suggesting the limit of monetary easing and lift the yen," said Minori Uchida, chief currency analyst at the Bank of Tokyo-Mitsubishi UFJ. Two noteworthy currencies overnight were sterling and the New Zealand dollar. Sterling slipped to $1.4124 GBP=D4, near its low last week of $1.4119 and having retreated from Friday's peak of $1.4437, driven by oscillating views on whether Britain would leave the European Union in a June referendum. Taking the blame for the latest fall in the pound was a poll suggesting supporters of "Brexit" had overtaken those who wanted to stay in the EU. News of further price falls in milk products, New Zealand's most valuable export, dragged on the kiwi which briefly dipped below 66 U.S. cents NZD=D4 for the first time in more than two weeks. It was last at $0.6607. International dairy prices fell at a fortnightly GlobalDairyTrade auction, confounding expectations for a rise and disappointing kiwi bulls. More»