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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • In blow to Biden, Supreme Court blocks vaccine mandate for businesses
  • Australia records highest temperature in 62 years
  • Russia-led troops begin pullback from Kazakhstan
  • Gauteng police search for man who tossed AK47 from vehicle during high-speed chase
  • ANC, EFF councillors disrupt City of Joburg council sitting in battle over voting procedures
  • Win or lose, Proteas have shown fire, fight and steps in the right direction

Fun Friday…

The indicators…

Currency crackdown

FXOne would like to thank Nyiko Ndlebe for his contribution to the crackdown this morning.

After recording two consecutive days of strong gains, the rand lost a bit of ground against the US dollar yesterday. From an open around 15.31/$, the local currency traded as high as 15.45/$ before settling down at 15.40/$. There were no obvious global developments or major economic releases to justify the price action, with initial thoughts pointing to a bit of profit taking by traders with some believing that the recent moves may have been overdone and that a correction was in order.

This morning the rand is slightly firmer at 15.36/$, as the dollar heads towards its largest weakly drop in eight-months (dollar index down 0.9% this week) with investors convinced that at least four Fed rates hikes have now been fully priced in. This comes after Fed Governor Christopher Walker said that a “rapid-fire series” of four or five rate hikes could be warranted if inflation doesn’t slow. Meanwhile, the euro traded to a two-month high against the dollar, while the pound also pushed higher on its way to a fourth consecutive week of gains despite the political crisis threating Prime minister Boris Johnson’s position as expectation of Bank of England rate hike solidify.

In other markets, Asian shared traded lower on higher US interest rate expectations. Gold is slightly firmer on the back of the weaker dollar, while oil prices are under pressure on expectations that the US may intervene to keep prices below $80 a barrel. Looking ahead, focus will shift to local inflation, retail sales and mining production figures next week ahead of the SARB’s rate decision on 27 January.

On the radar…

  • All – Omicron updates
  • UK – Industrial Production MoM & YoY
  • DE – Full Year GDP Growth 2021
  • EU – ECB President Lagarde Speech
  • US – Industrial Production MoM & YoY
  • US – Import & Export Prices MoM & YoY
  • UK – Balance of Trade
  • UK – Manufacturing Production MoM & YoY
  • EU – Balance of Trade
  • US – Retail Sales MoM & YoY
  • US – Manufacturing Production MoM & YoY
  • US – Fed Williams Speech

Did you know?

Dogs can pick up on subtle changes in your scent, which can help them know how you’re feeling. They’re able to smell fear, anxiety and can read your facial expressions, as well

Have a fantastic Friday and an even better weekend,

FXOne Team,

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