Rand remains weak on GNU discord
The Rand ended nearly 1.6% weaker yesterday as there are already signs that the GNU faces significant obstacles going forward with the two main parties, the ANC and the DA, struggling to find common ground.
The Rand is trading unchanged at R18.60 this morning despite a softer Dollar and improved risk sentiment in EM currencies.
Rate cut hopes in the US got a lift yesterday after Jerome Powell acknowledged that progress had been made in bringing down inflation. US Treasury yields fell after Powell’s comments and the Dollar has retreated against the Euro and Pound but the Yen continues to trade weaker.
Today sees a whole host of US data, including jobless claims, services and non-manufacturing PMI numbers, as well as the FOMC minutes.
Tomorrow the UK elections will be taking place with Labor expected to win an outright majority.
Powell’s comments see both Gold and Brent firm
Gold and Brent crude are trading firmer this morning on the back of Powell’s comments on inflation and the increasing rate cut hopes.
Gold is currently at $2,335, while Brent crude is up at $86.70. We can expect fairly quiet trade in the next 2 days given the US holiday and the UK elections tomorrow and ahead of Friday’s US employment data.