GNU stalemate puts the Rand on the back foot

The impasse in negotiations between the ANC and DA and the possibility of a GNU which excludes the DA has put the Rand under considerable pressure.

Compared to yesterday’s opening level, the Rand is currently trading 1.5% weaker at R18.50 against the Dollar while it sits weaker at R19.80 and R23.38 against the Euro and Pound respectively. The local currency is not being helped by a stronger Dollar ahead of today’s key PCE price index number.

The greenback is trading at 1.0690 against the Euro and at 1.2625 against the Pound, while the Yen has weakened to above the 161.00 mark. Most analysts felt that Donald Trump overshadowed Joe Biden in last night’s presidential debate and this gave the Dollar a boost as well.

Gold trading a touch lower but most commodities open stronger

Gold bounced just over 1.2% yesterday but has eased back slightly this morning to be trading at $2,322. Platinum and Palladium have both opened firmer this morning while base metals like Copper and Nickel are also showing gains. Brent crude is trading just above the $86.00 mark on the back of potential supply disruptions. The simmering tensions between Israel and Hezbollah, along with Ukraine’s attacks on Russian oil refineries has raised supply concerns and is underpinning the price of oil.