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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Queen Elizabeth to miss thanksgiving service due to mobility ‘discomfort’
  • Russia on track to make more money off oil, gas exports this year, and it’s got the EU to thank
  • US lifts restrictions on air links to Cuba
  • Eastern Cape man killed by falling electricity post during service delivery protest
  • Aston Martin boss wants to keep Vettel as Schumacher rumours ramp up
  • Stormers sweat over in-form Damian Willemse ahead of URC knockouts

Cartoon of the day…

The indicators…

Currency crackdown…

FXOne would like to thank Wayne Rosenberg for his contribution to the crackdown this morning.

Yesterday, the rand traded in a 15.61- 15.46 range, in reportedly limited liquidity. Rand caught a small windfall off the SA PMI data, which showed a recovery after the KZN floods and an increase in exports. All the right noise. We have the US employment numbers today which might again, have an impact on liquidity, due to market uncertainty. The UK also are away, celebrating the Queen’s Platinum Jubilee.

This morning, Gold is nicely higher, while the $ has lost ground across the board. From 1.0350 against the Euro a couple of weeks ago (and everybody talking about parity), the $ at the 1.0750 levels still looks it is struggling. Don’t bet against it, it almost looks set for a rebound. Brent has maintained levels, but thankfully below the $120 level., although OPEC disappointed the market with their increase in production announcement. US equity markets were all higher despite Fed member hawkish rhetoric and bearish banker equity talk. The US 10-year yield was marginally higher again (hawkish rate outlook), while the SA R2030 is slightly lower. Bitcoin has edged just above the $30 000 mark.

In illiquid conditions, volatility will be evident. US employment numbers today will be watched across the globe, for an indication of potential interest rate moves going forward. Depending on the release, and the interpretation of the detail- average hourly earnings, unemployment rate and participation rates- the $ will move. Keep an eye on the rand, as it might move late in the day. The US equity markets should give you a good indication of market sentiment after the release.

On the radar…

  • All – Russia/Ukraine Crisis
  • SA – Standard Bank PMI
  • EU – ECB’s Enria Speaks
  • EU – Services PMI
  • US – Unemployment Rate
  • US – Fed Member Brainard Speaks
  • US – Labour Force Participation Rate
  • US – Nonfarm Payrolls

Did you know?

Until 1956, French schools were allowed to serve half a litre of wine or beer to students over 14

Happy Friday!

Kyle

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