Demand for safe-haven assets rose; Japanese yen top performer
Following yesterday’s broad equities market sell-off, demand for safe-haven assets rose, making the Japanese Yen one of the top performers among G10 currencies as global economic concerns rise yet again. This demand was further reinforced by hawkish statements from Bank of Japan Governor Kazuo Ueda, who hinted at further rate hikes if the economy met forecasts. The Nikkei, which closed over 4% softer this morning, followed the sell-off in the US markets, where the likes of the Nasdaq closed 3% softer. The Rand opened this morning below the R18.00 handle and could test above this level, with risk sentiment not doing any risky assets favours at the moment.
Gold prices remain in a tug-of-war
Global demand concerns continue to weigh down oil prices, with Brent crude softer by another 0.5% thus far and trading nearly $10.00 per barrel lower than a week ago. Gold prices remain in a tug-of-war, with the improved Dollar and global uncertainty weighing up against one another. Focus this week remains on the dollar-denominated data, with the start of labour data out this week being the Job openings figures out later this afternoon.