Good morning, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the wires… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quote of the day | |||||||||||||||||||||||||||||||||||||||||||||||||||||
“Whatever the mind of man can conceive and believe, it can achieve.” – Napoleon Hill | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The indicators | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Currency crackdown… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FXOne would like to thank Luke Rosenberg for his contribution to the dose this morning. Yesterday was a very subdued day of trading for the rand. It traded within the tight range of R16.19-26/$ during the local session and opened at R16.25/$ this morning. There was nothing on the local data front to support the rand and softer PMI data out of the US provided the dollar with some support. The eurozone printed a mix bag, with their PMI figures also coming in lower and their retail sales rebounding from -1.4% to 0.2% MoM and 4.9% to 5.9% YoY. Europe’s biggest economy, Germany, printed encouraging data with manufacturing and industrial data improving across the board. This ultimately helped the euro against the US dollar, which closed $0.009 stronger to end the session at $1.1440/€. There were renewed attacks on shipping in the Strait of Hormuz yesterday, which caused the price of oil to climb, whilst the price of gold dropped. These attacks highlight the ever-present risks faced by tankers moving oil and natural gas in the region, which could shift the market towards a more risk-off sentiment. This change in the price of precious metals and the change in USD price since last year will have an effect on South Africa’s net gold and foreign exchange reserves data which was released this morning, however, the move doesn’t seem significant enough to cause any major concern. The net reserve position has decreased from $73.467 billion to $71.338 billion. There is a lack of significant local or international data being released today, so the rate will be driven by geopolitical headlines and market flows. Today’s range is R16.15-40/$, but without any major local or international geopolitical news, expect it to trade in a tight range again | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the radar… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Did you know? | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Being lactose tolerant in adulthood is the exception rather than the historical norm. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Kind regards
Sibusiso Khalishwayo
