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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Workers at Tesla’s Shanghai factory allowed to leave for the first time in weeks
  • British fighters captured by Russian troops sentenced to death
  • Meta has reportedly abandoned plans to release a R5,400 Apple Watch rival
  • Ramaphosa suspends Public Protector Busisiwe Mkhwebane with immediate effect
  • Eskom to transfer R40bn loan to transmission unit
  • Steely Rassie explodes after dealing with rut and dropped catch: ‘India needed to pay’

Cartoon of the day…

The indicators…

Currency crackdown…

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

Classic snapback for the rand, as it traded to a low of 15.17 yesterday before capitulating to international pressures, to a high of 15.52 overnight. Not for the faint hearted. Alarm bells were raised by the European Central Bank, suggesting that stagflation is unavoidable due to higher inflation and lower growth (why the surprise?). US equity markets also took a smack which has raised the “risk off” theme this morning. US inflation at 14h30 this afternoon is scaring investors, with an expected 8.3% year on year expected. Any print higher, and the rand will be off to the races again, while the opposite applies to a lower-than-expected print. China has shut down parts of Shanghai again which has added to the rand overnight misery.

Indicators: gold slightly lower with the $ looking good again. The SA R2030 yield is lower although the all-important US 10-year yield continues to hover above the 3% level. Brent is lower but still an issue, while the global equity markets look very messy. US equity futures indicate a neutral opening but will all depend on the inflation print. To be expected in the risk off situation, Bitcoin is lower.

It’s all about the US inflation release this afternoon. The rand has enjoyed a honeymoon week, now it’s back to reality and the conundrum of potential higher interest rates in a low growth scenario. Keep your eyes peeled, we still have some volatility to deal with.

On the radar…

  • All – Russia/Ukraine Crisis
  • US – Core Inflation Rate MoM & YoY
  • US – Inflation Rate MoM & YoY
  • US – Michigan Consumer Sentiment

Did you know?

The girl who voiced Lilo from ‘Lilo & Stitch’ was also Samara (the creepy long-haired girl) from ‘The Ring’. Actress Daveigh Chase

Have a great Friday and an even better weekend,

FXOne Team

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