… and then it was August,
On the wires…
- Germany’s economic model shaken by energy crisis
- US President Joe Biden just tested positive for Covid-19 – again
- European energy companies raking in record profits – as sky-high bills squeeze customers’ wallets
- One withdrawal per year allowed from your pension savings, under new ‘two-pot’ retirement rules
- Gauteng man wins R500 000 in damages from police after being ‘unlawfully’ detained
- Bafana legend Benni McCarthy joins Man United as coach
Quote of the day…
“The future belongs to those who believe in the beauty of their dreams” – Eleanor Roosevelt
FXOne would like to thank Wayne Rosenberg for his contribution to the crackdown this morning.
On Friday, the rand traded to a low of 16.40 before importers could not resist the temptation of a strong recovery level. The end of a tough trading week and month end also contributed to the tame close of the rand. This morning, we find trading at similar levels to Friday’s close against the $, but weaker against the Euro and GBP. The rand will continue to be battered by all economic releases, although most observers are concentrating of the US non- farm payroll figures on Friday. This data will again add fuel to the inflation fighting monetary stance of the Fed, versus poor growth prospects and the likelihood of recession.
The $ has behaved over the weekend and is almost unchanged against the basket and Euro. US equity markets were nicely higher on Friday, with good earnings releases. US equity market gains during July were impressive. Asian stocks are mixed this morning, and this is due to Taiwan geopolitical issues as well as concerns around China’s economic challenges. US equity futures prices are lower, but off a high July base. Brent remains unchanged with gold slightly higher- no help from those two. US 10-year Treasury yields seem to have found a base at the 2.65% level but are well off their highs. SA R2030 yields have recovered but remain elevated. Bitcoin fell slightly with most technical traders waiting to see if it can break the $24 000 level and continue its recovery.
This are no clear clues to the currency direction this morning. Expectations are for volatility to persist in a broader trading range. With no clear direction, buying or selling will have to occur on a suspected trough or peak, in those broadened ranges.
On the radar…
- SA – Manufacturing PMI
- SA – Total Vehicle Sales
- EU – Unemployment Rate
- EU – Manufacturing PMI
- UK – Manufacturing PMI
- US – ISM Manufacturing PMI
Did you know?
Giraffes have the same number of neck bones as we do.
Have a champion week,
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