Good morning, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the wires… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quote of the day | |||||||||||||||||||||||||||||||||||||||||||||||||||||
“If you don’t try at anything you can’t fail… it takes backbone to lead the life you want.” – Richard Yates | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The indicators | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Currency crackdown… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
As mentioned yesterday, the rand was likely to trade in a very tight range unless there were any geopolitical events of note. The rand did exactly that, with a low of R16.21/$ and a high of R16.27/$. Interesting to note, is that it opened and closed the local session at R16.25/$ – overall a trading session almost as flat as Harties on a windless winter’s morning. However, the geopolitical event we have been waiting for has finally come! The Us and Iran are firing missiles at each other once again, and the rand has opened a whopping 4c higher this morning! In all seriousness, although the initial move has not been a huge jump, this does have potential for longer term effects which will adversely influence the rand. The US have now reimposed sanctions on Iranian oil, which has seen the oil price climb by 5% since the announcement. Renewed strikes are also a driver of risk-off sentiment, which we were already seeing earlier in the week with the rise in oil prices and drop in precious metals. These strikes have cast some doubt on the current negotiations between the two countries, but the fact that the oil prices and subsequently the rand haven’t blown out completely is an indication that the markets do not see this as a collapse in negotiations, merely a setback. If it is reported that negotiations will continue and that the ceasefire is adhered to again, we should see global markets settle. Expect the rand to trade higher than earlier in the week, remaining sensitive to offshore happenings. A further increase in the price of oil will weaken the rand, so keep a close eye on that.
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On the radar… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Did you know? | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Throughout the Wimbledon tournament, an estimated 55,000 new tennis balls are used. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Kind regards
Luke Rosenberg
