Stable markets ahead of Jerome Powell’s testimony on Capitol Hill today

Currency markets are steady this morning as markets await Fed Chair Jerome Powell’s testimony before Congress this afternoon and the all-important US CPI data on Thursday. Analysts will be gauging the Fed’s response to the recent softer US economic and labour data, with markets already starting to price in 2 rate cuts this year.

The DXY index is currently at 105.00 as the Euro trades at 1.0830, the Pound at 1.2810, and the Yen at 160.90 in a muted Asian trading session. On the local front, the Rand firmed steadily throughout the day yesterday in line with the improved risk sentiment. The Rand has opened marginally softer at 18.13 this morning, and we expect trading to remain range-bound in the short term.

Gold price slips on the back of the improved risk sentiment

The gold price fell by just over 1.3% yesterday, and the improved risk appetite saw bullion traders make some profit after the last few days’ strong rally. Gold has bounced a touch this morning and is currently quoted at $2,365, while Platinum and Palladium are also firmer this morning after falling yesterday. Brent crude, which had climbed to above $87.00 on fears that Hurricane Beryl would disrupt supply out of the US Gulf Coast, has fallen back to $85.55 this morning.