Rand update
The rand managed to claw back yesterday afternoon’s losses and eventually closed firmer on the day at R15.68 as the euro and pound both bounced against the dollar. The local currency touched an intraday weakest level of R15.86 before the turnaround by the dollar.
The rand is trading a touch firmer at R15.67 this morning on the back of a lower dollar. Yesterday’s local PPI data showed prices at the factory gate increasing at a faster pace. The YoY number grew by 13.1% vs. market estimates of 12.3%.
The Russian central bank slashed interest rates by 3.0%, from 14.0% to 11.0%, in an effort to slow the sharp rally in the Ruble.
Commodity update
Gold ended flat yesterday while there were small gains for both Platinum and Palladium. This morning we have Gold and Platinum trading unchanged at $1,852 and $949, respectively, while Palladium is up 0.8% at $2,022. Tight supply continues to push the Oil price higher, with Brent quoted at $117.60 and WTI at 114.20.
International update
The DXY index has slipped to 101.5 as the dollar falls to 1.0758 against the euro and to 1.2650 against the pound. Traders are starting to lower their expectations for more aggressive rate hikes by the Fed as US economic growth starts to slow.
US treasury yields are consolidating below recent 20-year highs, and there have been some investors exiting their long Dollar positions. Wall Street rallied again yesterday, with the Nasdaq leading the way. The Nasdaq gained 2.68% and the Dow ended 1.61% higher. Asian stocks are following the positive move on Wall Street with all markets in the green, while US futures have opened largely flat this morning.
