MARKET UPDATE FOR 24th January 2022
The Kenyan shilling was barely changed on Friday, trading just above the all-time lows it hit in the previous session as tax payments by international firms helped stymie
losses. Expected range today is 112.00-116.00.
|INDICATIVE FOREX RATES|
|CROSS RATES||AGAINST KES|
CBK analysis on Friday showed a square market. The regulator therefore remained out of the market in order to remain within the set monetary policy path.
|LOCAL MONEY MARKET|
|TREASURY BILLS AND BONDS (MIO KES)|
The dollar was up on Monday morning in Asia, with the U.S. Federal Reserve’s latest policy decision due later in the week. US preliminary PMIs for January will direct intraday moves. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched
down 0.10% to 95.735.
EUR/USD is under pressure in the opening session for the week and easing off from $1.1345 highs to $1.1332 as risk-off continues on the back of Friday’s bearish close on Wall Street. Asian markets are lower on Monday with the Fed Reserve expected to confirm it will soon start draining the massive liquidity that has fulled stock markets for years. Russia-Ukraine fears and Omicron updates add to the watcher’s list and weigh on prices. Preliminary readings of January PMI and inflation data can act as buffers ahead of Wednesday’s
GBP/USD struggles to keep corrective pullback and seesaws around $1.3550 heading into Monday’s London open. In doing so, the cable pair fails to justify the US dollar strength ahead of the key preliminary PMI numbers for January for the UK and the US. Other tha the pre-PMI cautious, the pair’s indecision could also be linked to the market’s fears of hawkish Fed during Wednesday’s FOMC meeting. A rise in death tolls also weighs on the sterling.
|LOCAL AND INTERNATIONAL BENCHMARK RATES|
|GBP BOE RATE||0.25%|
|EUR ECB RATE||-0.50%|
|USD FED RATE||0.25%|
|$ LIBOR 6 & 12 Month||0.44443/0.79857|
|£ LIBOR 3 & 6 Month||0.55480/0.88460|
For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Milton Onyuna, Alfred Too, Lorna Kageni, Martin Githinji and Ndanu Musyoka
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Whilst every care has been taken in compiling this market update, the Bank will not be responsible for and shall be exempt from all liabilities in respect of any loss of any kind whatsoever, incurred by any persons as a consequence of relying on the above information or otherwise.