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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • EU ditches ban on oil tankers that ship Russian crude to third countries, keeps restrictions on insurers
  • China using AI and 3D printing to build a 180-metre high dam without using human workers
  • EU nuclear coordinator to visit Iran this week
  • Eskom is setting a record pace for outages and diesel use in May
  • 3 more suspects arrested for murder of Randburg pensioner found buried in his backyard
  • Guardiola getting his striker as Haaland agrees personal terms with Man City

Quote of the day…

“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking.” – Steve Jobs

The indicators…

Currency crackdown…

The Rand had a horrible early morning trading session yesterday, where we saw the currency weaken over 1% across the board. Overnight the rand was able to show a slight recovery but nothing too great as we still see the USD/ZAR still trading above the 16/$ level this morning. Late afternoon SA was hit by another loadshedding scare but thankfully was suspended after 5 hours. Investors now look elsewhere for movement but our local currency remains under pressure from current market sentiment and up and coming external economic data. With a very light economic data calendar for the Rand, we are left to look elsewhere for movement and direction.

The US Dollar remains strong as the currency continues to rally on the back of Fed comments as well as expectations for further monetary policy tightening to fight inflation. Markets are now looking towards inflation data due tomorrow which is going to be monitored very closely after the last figure clocked in at a 40-year high and will define the US Federal Reserve’s next move on raising interest rates and by how much. However, Atlanta Fed President Raphael Bostic did mention yesterday that he does not see a 75 basis point hike as there are some signs of inflation cooling. Looking at the economic data on the cards for the US today, we have little data due but we have quite a few Fed Members speaking and with Fed comments being so influential it is wise to keep a close eye on them.

Elsewhere Asian markets traded slightly weaker this morning, with gold following suit with both awaiting inflation data due from the US. Oil is also showing signs of weakness with the commodity trading weaker on the back Europe softening some proposed Russian oil sanctions.

On the radar…

  • All – Russia/Ukraine Crisis
  • All – Covid 5th Wave
  • EU – ZEW Economic Sentiment Index MAY
  • US – Fed Members Speeches

Did you know?

Drinking watermelon juice before working out can reduce muscle soreness and the amount of time it takes for your heart rate to recover.

Have a great day,

Keaton

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