DXY index at a 1-month low as rate cut bets rise
The DXY index is below the 105.00 mark, with the Euro sitting at 1.0822, the Pound at 1.2810, and the Yen at 160.70. Non-farm payrolls came in better-than-expected, but there was a huge downward revision to last month’s number while unemployment rose to 4.1%.
Bets on a possible September rate cut have climbed, lifting risk sentiment in markets. Jerome Powell’s testimony before Congress and Thursday’s US CPI data will be sharply in focus this week for further clues to the Fed’s likely actions. The Rand is holding steady near Friday’s stronger closing levels of around R18.22 and we expect the local currency to stick within a R18.00/R18.40 trading range in the short term.
Gold and Brent steady ahead of US inflation data
Gold is holding steady at $2,382 after have rallied strongly on Friday as the Dollar retreated. Platinum and Palladium have started the new week on a softer note at $1,019 and $1,006 respectively, while Brent crude is steady at just below the $87.00 mark.