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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Kyiv suspends exports of Ukrainian gas, coal and fuel oil
  • Israel urges nationals to leave Turkey over Iran attack threat
  • Spain in grip of heatwave as France braces for soaring temperatures
  • New game plan proposed to end load shedding, as top researchers say Stage 8 looms
  • Parts of Cape Town flooded, left without electricity amid heavy rainfall
  • Osimhen hits four as Nigeria create AFCON record by winning 10-0

Quote of the day…

“Life is like a moving river, and you can be at the mercy of the river if you don’t take action to steer yourself in a predetermined direction.” – Mahesh Jethmalani

The indicators…

Currency crackdown…

What a day we had yesterday, the rand was like a deer caught in headlights as it weakened throughout the day – still reeling from Friday’s US inflation figures. Overnight the rand was able to claw back some losses and hold firm, but inflation fears still remain the headline. This morning we see our rand trading just above the 16.00 level against the dollar, where market sentiment may continue to push our local currency onto the back foot as we get closer to the Fed interest rate decision tomorrow. With no economic data due locally, we are left looking towards international factors and news for more direction.

The US Dollar traded slightly weaker overnight after hitting a 20 year high, but still remains buoyant around the 20 year peak as markets and investors are eyeing out a more aggressive interest rate hike from the US Federal Reserve. With inflation continuing to rise after markets invested in the idea that inflation had peaked, a fresh bout of recession worries hit the market – leaving central banks all over the world scrambling to reel global inflation back in. Investors will need to keep a close eye on other central banks policy decisions – with Bank of England looking to hand down their policy decision on Thursday and the Bank of Japan on Friday. Looking at the economic data on the cards for the US, we have some key Producer Price Inflation data due today but markets will remain focused on the Fed interest Rate decision.

Elsewhere Asian equity markets slid on the back of Fed hike fears. On the commodities side oil traded slightly higher while gold retreated in the current bear market, as investors worry about a potential recession due to imminent aggressive rate hikes.

On the radar…

  • All – Russia/Ukraine Crisis
  • US – PPI MoM & YoY
  • US – Core PPI MoM & YoY
  • EU – ZEW Economic Sentiment
  • US – FOMC on Wednesday
  • UK – Rate Decision on Thursday

Did you know?

When Pokémon Go was first released, it increased U.S. activity levels by 144 billion steps in just 30 days.

Have a great day,

Keaton

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