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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • China is shuttling small ships to tankers at sea to transport cheap Russian oil amid sanctions
  • WHO asks countries to increase surveillance for Monkeypox
  • Taliban ‘making women invisible’ in Afghanistan
  • Former Transnet CEO Siyabonga Gama arrested
  • Man arrested at OR Tambo airport after cops find 26kg rhino horn stashed in his hand luggage
  • Charles Leclerc needs to break his Monaco curse after four seasons of sheer bad luck

Cartoon of the day…

The indicators…

Currency crackdown…

It seems that Wednesday’s Fed minutes have now been fully priced into the dollar – albeit at a slight lag. The dollar index weakened again yesterday, making it roughly half a percent drop over the last two days. This is almost a mirror image of the USD/ZAR pairing – which now sits around 15.66 and has also dropped by around half a percent in the past two days, with the dollar retreating amid signs that the Fed’s tightening of its monetary policy could already be slowing economic growth. US Treasury yields have also fallen to a fresh six-week low, which further undermined the dollar. In other currency news, the Russian rouble slumped around 10% against the dollar in a volatile trade to a two-week low yesterday after the Russian central bank cut interest rates to 11%. Both the EUR/ZAR and GBP/ZAR pairings saw very little change throughout yesterday’s session.

Brent crude is on track for its biggest weekly jump in one-and-a-half months and is hovering near a two-month high. Momentum is flat-out bullish, with many factors pointing to a tighter market, even more so with the EU on the precipice of a total ban on Russian energy. The black liquid has gained about 50% year-to-date. Meanwhile, gold dropped in price yesterday – mostly due to the Fed’s monetary policy tightening plan dimming bullion’s appeal and a rebound in equities. However, there has been some rebound this morning, with gold up on Friday morning in Asia and set for a second weekly gain after the dollar retreated from 20-year highs.

In cryptocurrencies, better risk sentiment has not helped Bitcoin, which slipped 0.9% to around the $28,908 mark and continued the week’s gradual decline from $30,000

On the radar…

  • All – Russia/Ukraine Crisis
  • All – Covid 5th Wave
  • UK – ECB’s Lane Speaks
  • US – Fed Member Bullard Speaks

Did you know?

92% of the world’s fiat currency is digital

Happy Friday!

Kyle

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