Good morning, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the wires… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quote of the day | |||||||||||||||||||||||||||||||||||||||||||||||||||||
“In matters of style, swim with the current; in matters of principle, stand like a rock.” ― Thomas Jefferson | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The indicators | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Currency crackdown… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The rand had a mixed day yesterday, trading against a backdrop of continued uncertainty in global markets. It initially gained ground against the US dollar, with USD/ZAR opening at around R16.64/$ and strengthening to an intraday low of roughly R16.58/$. However, the rand struggled to hold on to these gains as the session progressed, with the exchange rate climbing to around R16.71/$ at its highest point. It later recovered some ground to close near the opening. This morning we came under some more pressure as the US dollar strengthened against major currencies. The dollar has continued to find support in global markets, with several major currencies gradually losing ground against it. This broader strength in the dollar is likely to remain an important influence on the rand’s performance in the near term. Gold traded under pressure yesterday, edging lower towards the $4,000 per barrel level as investors remained cautious ahead of the US Fed’s interest-rate decision due later today. Uncertainty over the Fed’s next move and the strength of the US dollar weighed on sentiment, keeping traders focused on the potential direction of interest rates. Oil prices, moved higher as markets monitored rising geopolitical tensions in the Middle East. Concerns increased following reports that the US had urged several Persian Gulf nations to prepare for a possible fresh military campaign against Iran after the US midterm elections. Developments surrounding the Israeli election also added to market uncertainty. Today, markets will be keeping a close eye on the Fed’s upcoming interest rate decision, with expectations largely pointing towards the US keeping rates the same (90% probability). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the radar… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Did you know? | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On this day in 1886, the Statue of Liberty was officially dedicated – a gift from the people of France to the people of the United States. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Regards,
Nikita Govender
