Markets range-bound ahead of jobless claims data
Given recent events, investors are currently highly sensitive to any negative news that could hint at a recession. Currency and commodity markets are keeping within recent ranges ahead of today’s US jobless claims number with traders in cautious mode. Concerns surrounding a possible US recession and global growth concerns are unsettling markets while contradictory signals from the BOJ have seen continued volatility in both the Yen and the Nikkei. Hawkish comments from RBA Governor Bullock have seen the Aussie Dollar firm nearly 0.7% to 0.6560 against the Dollar. EM currencies are also a touch firmer this morning and we have the Rand currently at 18.35. The Rand has experienced volatility but has shown some recovery, though it remains vulnerable to further fluctuations. South Africa’s carry trade attractiveness has declined, and any rate cuts by the SARB could add to the Rand’s instability. Equity markets are mixed with US markets and futures in the red, but the rest of the global markets are positive.
Commodity prices open firmer
Precious metals have opened firmer this morning, with Gold up at $2,393, Platinum at $924, and Palladium at $894. Trading remains on the cautious side, with geopolitical and recession concerns, along with US rate cut uncertainty, all factored in traders’ thinking. Brent crude closed firmer at $78.33 last night on the back of lower US inventories, but demand concerns are limiting gains for now.