Dollar flat at overnight weaker levels, US 2-year bond yield falls below 4.0%
The Dollar is trading unchanged at last night’s weaker closing levels of 1.1130 against the Euro and 1.3030 against the Pound as US bond yields continue to fall in anticipation of deeper rate cuts by the Fed. The 2-year yield is now 3.99%, while the 10-year yield is 3.81%. Tonight’s Fed FOMC might provide some clues as to exactly how many rate cuts we will see this year, with markets already pricing in 4 cuts. Global equity markets are in all the red this morning, following on the weaker close on Wall Street last night as the recent strong rally paused ahead of Powell’s speech on Friday. We saw a small correction in the Rand yesterday, with the currency closing at R17.79 last night after starting the day below the R17.70 level. We are currently trading flat on the day as traders eye today’s local inflation numbers.
Gold holding steady after hitting another all-time high yesterday
Gold traded at a new record high of $2,531.60 yesterday, buoyed by the sell-off in the Dollar, rate-cut bets, and some safe-haven demand due to global growth concerns. The yellow metal is currently holding steady at $2,517, while Platinum and Palladium are both showing small gains. Oil continues to struggle on the back of global demand concerns, easing geopolitical tensions, and higher US stockpiles. Brent crude is currently sitting just above the $77.00 mark while WTI is at $73.06.