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Good morning, |
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On the wires… |
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Quote of the day |
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“A fool is known by his speech; and a wise man by silence.” — Pythagoras |
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The indicators |
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Currency crackdown… |
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| On Friday, the rand had a good day trading from an opening level of 16.23 to a low of 16.18. The SARB MPC’s interest rate hike on Thursday continued to support the currency. The USD was also slightly softer on a potential ceasefire optimism. This has been reversed over the weekend; however, markets have hardly reacted with currencies across the board quiet. Movements of the rand against the Euro and GBP are also limited. Slowly but surely, it seems as if war talk is being replaced by economic trends headlined by higher interest rates for longer. This should continue if we do not see a return to a full-blown war activity. Equity markets are still trading higher with several trading at all time highs. The AI technology trade looks like it is back, and this willingness of investors has seen a broader “risk on” trend emerge. US 10-year Treasury yields traded back towards the 4.50% level, after US inflation ticked higher. The spoiler this morning is the kick in oil prices, as tensions increased after a US military strike and an Iranian retaliation. The $ is hardly moved and will flip- flop depending on what is happening in the Strait of Hormuz. Bitcoin is lower and is tucked neatly in the recent 70 000- 80 000 range. Anticipation of a Middle East peace deal remains at the forefront of markets this week. With higher gasoline prices in the US starting to ramp inflation, it will suit Trump to get a deal done. The market seems to have priced a small percentage of a deal into asset prices, with the rand also enjoying a tailwind. We have the normal economic releases kicking off the month. The Fear and Greed index is measing markets as in “greed” mode (61/100) with volatility measured as neutral. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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On the radar… |
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Did you know? |
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Earlobes have no biological purpose. |
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Wayne Rosenberg
