Investors are betting the greenback will decline further on expectations that the US central bank will be forced to hold interest rates steady while those in the UK and eurozone rise, the Financial Times reports. Speculative traders have doubled their short positions in the greenback since mid-March to a total of USD 10.7 bn, the FT says citing Refinitiv calculations. “The dollar has had a fantastic run but it’s starting to turn,” Deutsche Bank strategist Alan Ruskin is quoted as saying.

What do you mean “further declines”? We might think of the USD as a perennially “strong” currency, but it’s seen a big reversal of fortunes in recent months. The greenback last week hit its lowest level in a year against a basket of currencies as the US banking crisis quelled expectations of further rate hikes. The drop comes after an 18-month bull run that saw the USD hit a 20-year high back in September.

Also worth knowing this morning:

  • E-commerce platform Noon has laid off some 10% of its 3.4k-strong workforce as part of cost-saving measures. “We started [layoffs] before the big tech companies did but we’re done now,” said founder Mohamed Alabbar. (Bloomberg)
  • Goldman Sachs is “narrowing focus” after a tough quarter: The bank is pushing ahead with plans to pull away from consumer banking after 1Q 2023 revenue fell 5% to USD 12.2 bn and earnings dropped 18% to USD 3.2 bn. (WSJ)
  • HSBC’s biggest shareholder Ping An has renewed calls for the bank to spin off its Asia business ahead of a 5 May shareholders’ meeting. Advisory group Glass Lewis has counseled against the proposal. (Reuters)
  • Higher oil prices will more than offset any losses to the Saudi purse from the production cuts it agreed with OPEC+, according to the IMF. (Bloomberg)

EGX30

17,539

-0.8% (YTD: +20.1%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,164

+1.2% (YTD: +6.5%)

ADX

9,638

-0.1% (YTD: -5.6%)

DFM

3,512

-0.1% (YTD: +5.3%)

S&P 500

4,155

+0.1% (YTD: +8.2%)

FTSE 100

7,909

+0.4% (YTD: +6.1%)

Euro Stoxx 50

4,394

+0.6% (YTD: +15.8%)

Brent crude

USD 84.75

-0.0%

Natural gas (Nymex)

USD 2.36

-0.1%

Gold

USD 2,015.80

-0.2%

BTC

USD 30,342

+2.8% (YTD: +83.8%)

THE CLOSING BELL-

The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 1.95 bn. Local investors were net buyers. The index is up 20.1% YTD.

In the green: Abu Dhabi Islamic Bank (+10.0%), Credit Agricole Egypt (+6.7%) and Abu Qir Fertilizers (+6.2%).

In the red: CIB (-6.7%), Telecom Egypt (-3.8%) and Ibnsina Pharma (-1.7%).

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