Key week for markets
This week will be key for markets, with the Fed FOMC and Bank of Japan monetary policy meeting on Wednesday, while the Bank of England MPC meeting will be held on Thursday. The Fed is expected to keep rates on hold but markets are looking for a more dovish outlook going forward. The BOJ is forecast to hike rates while markets are split as to what the BOE will do. Later in the week, we have the all-important US nonfarm payrolls and unemployment numbers. The Dollar is trading relatively flat at Friday’s slightly softer closes at 1.0860 against the Euro, at 1.2875 against the Pound, while the Yen is firmer at 153.38. Risk-sentiment seems a bit more positive despite increased geopolitical concerns and fears of a wider Middle East conflict between Israel and Hezbollah. EM currencies are holding on to Friday’s gains, with the Rand trading a touch firmer at R18.29 this morning. The local currency is likely to remain in the recent broad R18.00/R18.50 range ahead of this week’s central banks’ meetings and Friday’s payroll numbers.
Commodities begin the new week on a positive note
Gold, Platinum, and Palladium have all three started the new week on a firmer footing. Gold is up 0.4% at $2,394, Platinum is up 0.8% at $945, and Palladium is 1.1% higher at $910. Base metals are currently trading in the green, while the Middle East geopolitical concerns have seen Brent crude open 0.5% higher at $81.54.
