On the wires…

• Kruger Park deluge: SANParks evacuates Letaba, closes Phalaborwa Gate and Saws issues Red Level 10 alert.
• Steenhuisen to run for DA leader, despite Dion George slurs.
• US dismisses objections to SA’s exclusion from G20, says AU ensures African representation.
• S Korea’s ex-president Yoon to be jailed for five years over martial law bid.
• Venezuelan Nobel Peace Prize winner presents her medal to Trump.
• Carrick given Manchester derby baptism of fire, Frank in the firing line.

Quote of the day

“The most wasted day of all is that on which we have not laughed.” – Nicolas Chamfort

 The indicators

Currency crackdown…

FXOne would like to thank Kyle Moulster for his valued contribution to the currency comment this morning.

We lacked any major excitement yesterday, with not a lot of action on the local front. The rand had a shaky start to the session, looking to test 16.45 before trading back down into the 16.30’s. Lower-than-expected weekly jobless claims from the US, together with Fed speakers voicing concerns over inflation, saw the dollar strengthen against most currencies (Including EUR and GBP). Despite this, a defiant rand held on.

The only real point of interest remains the ongoing joint naval exercises off the South African coast involving China, Russia and Iran under a BRICS context. These drills have attracted foreign policy scrutiny, particularly from the US. America describes Iran as a “destabilising actor and state sponsor of terror” whose participation undermines maritime security and regional stability. While I am not a huge fan of US policy at the moment, the point remains that we as a country probably can’t preach on human rights on the global stage, while standing with a regime like Iran. As a result President Ramaphosa asked that Iran refrain from participating – A order which was swiftly ignored by SANDF, in their infinite wisdom. This turbulence doesn’t seem to have spilled into the currency fortunately.

Gold prices have dropped slightly, as firmer US data tempered rate cut expectations and may have instigated some profit taking. I would assume that there is a wide range of investors in gold at the moment, which continues to prop up the price. Oil steadied after its biggest decline since June, after the US graciously informed the world that they would hold off on attacking Iran for now. Today’s economic calendar is relatively light and local flows have been muted this week.

On the radar…

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