Weekly Market Update

21 September 2015

Fixed Deposit Rates (USD)

Tier
50k-99k
100k-499k
500k-999k
1 Million and
above

30 days
0.40
2.15
2.30

90 days
1.50
2.60
2.85

180 days
2.00
2.75
3.00

360 days
2.50
3.50
4.00

2.50

3.10

3.80

4.30

180 days
0.33
1.01

360 days
0.53
1.40

(Source: Fab Treasury)

Fixed Deposit Rates (EUR & GBP)
Currency
EUR
GBP

30 days
0.13
0.72

90 days
0.23
0.80

(Source: Fab Treasury)

African Currencies

Market Rates (from 14th to 18th September)

Currency
Open
Close
High
USDJPY
120.379
119.933
120.990
GBPUSD
1.54097
1.55162
1.56567
EURUSD
1.13301
1.12953
1.14598
AUDUSD
0.70768
0.71677
0.72790
USDZAR
13.54915
13.28610
13.61517
USDGHS
4.0100
3.9000
4.0900
USDNGN
199.000
199.045
199.115
USDKES
105.200
105.150
106.100
(Source: Fab Trader Platform & uk.investing,com)
Metals and Stocks (from 14th to 18th September)
Metal
Open
Close
High
Silver
14.5839
15.1525
15.4374
Gold
1,107.92
1,138.94
1,141.49
Stocks
US 500
1,962.65
1,956.61
2,021.31
US 30 WS
16,454.6
16,373.4
16,935.1
UK 100
6,151.14
6,095.83
6,261.16
GERMANY 30
10,161.90
9,926.50 10,336.90

technical correction in the dollar," said Omer Esiner, chief

market analyst at Commonwealth Foreign Exchange. "The Fed's
decision has introduced heightened volatility in the market.
Investors continued to sell the dollar earlier in the session
before taking profits on their long positions in other currencies
such as the euro and yen.
Markets have reduced expectations for a rate increase this year,
which could dim the short-term outlook for the dollar.
Rates futures placed an 11 percent chance on Friday that the Fed
would raise rates in October, down from 41 percent early on
Thursday, according to CME Group's FedWatch program.
(Source: reuters.com)

Low
119.048
1.53281
1.12135
0.70623
13.15662
3.7800
197.450
104.800

Low
14.2252
1,100.92
1,945.77
16,308.9
6,017.90
9,926.50

FOREX-Dollar recovers from three-week low in technical rally

The dollar rebounded from a three-week low on Friday, a day after
the Federal Reserve kept U.S. interest rates on hold, in a late technical
rally after a steep sell-off the previous session.
The Fed decision largely disappointed investors who wanted to get
the process of normalizing rates going even at a gradual pace. It was
largely expected though.
However, it was the Fed's dovish message, specifically the uncertain
global growth outlook that could weigh on the world's largest
economy, that took the market by surprise.
Market participants had anticipated two scenarios: a Fed hike with
dovish undertones, or no move, but with upbeat comments about the
U.S. economy. Investors continued to sell the dollar earlier in the
session before taking profits on their long positions in other
currencies such as the euro and yen. "This is nothing more than a

NIGERIA
Nigerian bond yields are expected to fall next week on
expectations that the central bank will cut the cash reserve
requirements (CRR) at its meeting on Tuesday, leaving banks
with more money to invest in fixed income assets.
"The market is bullish presently because everyone is expecting
a reduction in CRR at the MPC meeting next week," one dealer
said, referring to the bank's Monetary Policy Committee
meeting.
Nigeria central bank now requires banks to keep 31 percent of
both public and private sector deposits in a reserve account with
the central bank.
The yield on benchmark 2024 paper was quoted at 15.34
percent from 16.02 percent last week. The yield on 2022 paper
was 15.48 percent, down from 16.13 percent last week. The
longest tenor paper 2034 was trading at 15.44 percent against
16.11 percent last week. ($1 = 105.0500 Kenyan shillings)
(Source: reuters.com)
KENYA
Yields on Kenya's Treasury bills are expected to rise next week,
reflecting the rise in overnight bank lending rates.
The central bank's Monetary Policy Committee meets on
Tuesday but a Reuters polls forecast that the benchmark rate
would be held at 11.50 percent
The bank will auction 91-, 182- and 364-day bills worth 12
billion shillings ($114.23 million) next week.
"I think rates will keep going higher," said one trader, noting that
overnight lending rates rose to 23.3978 percent on Thursday
from 13.4389 percent a week earlier.
At this week's sale of T-bills, the weighted average yield on the
91-day paper rose to 14.486 percent from 13.858 percent last
week, while yield on 364-day paper climbed to 15.768 percent
from 14.948 percent.
The bank will also auction a one-year Treasury bond worth 30
billion shillings on Thursday. (Source: reuters.com)

Weekly Market Update

21 September 2015

(Source: Fab Trader Platform)

EUR/USD: The pair seems to be in a mild uptrend/bullish consolidation since February 2015. On a daily chart, the pair
was seen in a downtrend but slowly rising. It rallied after the U.S. Federal Reserves decision to leave its benchmark
interest rate unchanged at near zero percent, which lead to lower close for the week. Traders cited worries over this
weekends elections in Greece as one reason for the selling pressure late in the week.

(Source: Fab Trader Platform)

USD/JPY: The USD/JPY closed slightly lower last week, indicating that investors had almost no reaction to the Feds
decision to leave interest rates at near zero. In fact, the price action was mutual, which basically reflected the price
action in the U.S. equity markets. The movement is likely to continue over the near-term until stock investors decide if
they should continue to force the upside as long as interest rates remain at lowest level, or begin to gradually reduce
positions before the central bank actually raises rates.