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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • As Sweden’s and Finland’s NATO bids move forward, the alliance is already eyeing their fighter jets
  • US Supreme Court lets Biden end Trump-era immigration rule
  • Putin denies Russia’s role in looming global food crisis
  • Two charged for allegedly failing to disclose a R45m PPE tender payment
  • Stage 4 load shedding for the day, Stage 6 from late Friday afternoon
  • Controversy swirls as Ortiz leads LIV Golf’s first US event

Cartoon of the day…

The indicators…

Currency crackdown…

The rand endured somewhat of a freefall yesterday as it traded to a 52-week high of 16.47 per dollar from an open around 16.24 before ending the day at 16.27 . The rate opened slightly higher at 16.28 this morning but has quickly jumped back up to 16.37. It remains to be seen if the dollar will hold at these levels, after we saw some wild 20 cent swings throughout the day.

The story is similar with the EUR/ZAR and GBP/ZAR pairings, despite concerns around each respective currency. Our rand opened around 10 cents weaker against both currencies this morning. The euro itself recovered from a two-week low against the dollar yesterday, which sputtered after fresh inflation data showed US consumer spending rose less than expected in May. Eurozone inflation data comes out later today and should give us some clues on the magnitude of interest rate hikes by the ECB in July. After French inflation came out at a record high yesterday, more of the same is to be expected today.

Data yesterday exposed that South Africa’s trade balance has deteriorated – our surplus is half what it was this time last year. This move is no doubt due to the elevated price of our oil and petroleum product imports, which accounted for the vast majority of our import value. SA manufacturing PMI data later today should give us an indicator of South Africa’s production levels. A higher-than-expected reading should be taken as bullish for the ZAR, while a lower-than-expected reading should be taken as negative/bearish for the ZAR.

On the commodity front, gold conceded further value to dip below $1800, while oil also extended yesterday’s plunge on recession fears Bitcoin dropped below $19,000 yesterday, down 60.9% from the year’s high of $48,234 in March. Several big players in the cryptocurrency markets have had difficulties, and further declines could force other crypto investors to continue to sell-off holdings to meet margin calls and cover losses.

On the radar…

  • All – Russia/Ukraine Crisis
  • SA – PMI Manufacturing Index
  • SA – Total Vehicle Sales
  • UK – Manufacturing PMI
  • EU – CPI
  • EU – Manufacturing PMI
  • US – Manufacturing PMI

Did you know?

Hawaiian pizza was invented in Canada by a man from Greece

Happy Friday!

Kyle 

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