Positive US retail sales data eases recession fears
US retail sales grew by 1.0% in July versus market estimates of only 0.4% while jobless claims were lower than expected. The positive data has eased fears of a hard landing and recession in the US and lifted risk sentiment. The Dollar firmed against the major currencies yesterday, closing at 1.0971 against the Euro, 1.2851 against the Pound, and 149.27 against the Yen. The greenback has given back some ground this morning as we settle back into the recent trading ranges. The improved risk sentiment has pushed EM currencies stronger, with the Rand currently trading just below the R18.00 level. We expect some consolidation and some pullback in the Rand from current levels ahead of the Jackson Hole central bank symposium next week.
Gold flat, oil a touch lower
Gold is trading flat at $2,455 as gains are capped by the improved risk sentiment but with the Middle East tensions providing some support for the metal. Platinum and Palladium are also largely unchanged this morning, while Brent crude is trading a touch softer at $80.80.
