Market update for 28th Dec 2011- Barclays Bank Ghana
Local Money Market: Significant cash withdrawals ahead of the Christmas notwithstanding, O/N AIBOR shed 9 bps to close Friday’s session at 6.10% as the market was very liquid. We expect today’s tradable rates to remain in the 5.90%-6.40% band Short-term yields rose across board at last week’s auction. The 91-day, 182-day, 1year and 2-year notes rose 24bps, 1bp, 15bps and 25bps respectively to 10.66%, 11.25%, 11.30 and 12.40%.
Local FX Market: USD/GHS: The local Unit remained flat versus the U.S. dollar in Friday’s pre-Christmas session, closing at $1.6375/00; on course to close 2011 down 10.5% compared with 3.69% depreciation recorded in 2010. Market is seen opening today at 1.6370/95 with volume of trades expected to be thin as we approach the year-end. On the Forex Bureau market, USD, EUR and GBP are selling at 1.6550, 2.1800 and 2.5870 respectively. BBG sells USD, EUR and GBP cash at 1.6500, 2.1615 and 2.5920 respectively.
Global Currency Market:
Euro: The euro hovered above the 11-month trough against the dollar in Asia on Wednesday, with thin year-end trade set to keep the common currency subdued and as markets awaited the outcome of an Italian bond sale due later in the week.
Global Commodity Market:
Gold: Gold edged lower on Wednesday, tracking falls in industrial metals and equities, as concerns about global economic growth weighed on market sentiment amid thin year-end trading volumes. Spot gold edged down 0.3 percent to $1,588.29 an ounce at the time of writing, on course for a third consecutive session of losses
Oil: Brent crude oil steadied above $109 a barrel on Wednesday after rallying for a six straight sessions’ supported by Iran’s threat to halt oil shipment through the Straight Hormuz. Brent eased 13 cents to $109.14 a barrel in early trades.
Cocoa: U.S cocoa futures ended down a shade in Tuesday’s choppy dealings. Key March cocoa finished down $2 at $2,216 per tonne.
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