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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Afghan women push back against Taliban orders to cover their faces
  • UK confirms case of monkeypox, which causes boils and full-body rashes
  • European Investment Bank head backs multi-trillion-euro plan to rebuild Ukraine
  • Eskom’s grim warning: SA must more than double its generation capacity in just 13 years
  • Personal details for more than 3.6 million Dis-Chem customers accessed in data hack
  • ‘Beyond perfect’ De Bruyne takes Man City closer to Premier League title

Quote of the day…

“You can’t give your life more time, so give the time you have left more life” – Anonymous

The indicators…

Currency crackdown…

FXOne would like to thank Dave Gracey for his contribution to the crackdown this morning.

  • I have a nasty feeling in my belly – and that is not an invitation to my dear colleagues to tell me that it must be a big feeling.
  • You will recall that in previous comments I have spoken about the exporter activity that has protected the rand from the greater macro risks taking place. This was evidenced by the recent trade surplus release of a whopping 45 billion rand.
  •  However, our monitoring suggests that that this flow has dried up recently.
  • Now it may be that there are some technical reasons for this. Perhaps our clients are waiting for better levels.
  • But it may be far larger consequential issues at play here.
  • It could be …..
    • Because of our crumbling rail and port  infrastructure, that our mining companies can’t get product to market?
    • Because ports are gridlocked all over the world that these resources cannot get to the end users?
    • Because China is in hard lockdown (zero covid tolerance) that they are not manufacturing and thus demand has collapsed?
    • Or a combination of all of these factors?
  • So although commodity prices in general remain elevated, for now we are not seeing the benefits.
  • Time will tell whether all of this can be resolved, but for now the lack of export activity is leaving the Rand vulnerable, and its showing.
  • As always our own domestic backdrop is hardly supportive for the currency. It can’t be long before Eskom announces stage 4 or higher loadshedding.
  • This is the source of my unease…….I hope I’m wrong!!!
  • Good luck

On the radar…

  • All – Russia/Ukraine Crisis
  • All – Covid 5th Wave
  • US – IEA Monthly Report
  • US – Core PPI
  • US – Initial Jobless Claims
  • US – Fed Member Daly Speaks
  • SA – Business Confidence
  • SA – Gold Production

Did you know?

The average adult will spend 34 years of their life staring at screens.

Have an awesome Thursday,

Kyle

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