Daily Market Report 1 Oct
- South Africa: Public servants are demanding a 12% wage hike while inflation is decreasing, investors are being wooed during a London roadshow, and fuel prices are set to drop. Meanwhile, private sector credit grew sharply in August, driven by corporate demand, while household credit remained stable. Trade balance narrowed due to declining exports, which negatively impacted the ZAR.
- Global: Israel launched a ground offensive against Hezbollah, and US Fed Chair Jerome Powell indicated a cautious approach to rate cuts, impacting global currency trends.
- ZAR Outlook: The ZAR saw a correction following overbought conditions, driven by trade balance data, and bond markets are experiencing similar pullbacks as US labour market data becomes key to future moves.
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We provide effective and measurable processes for managing:
- Exchange Rate Risk arises when an organisation conducts business in multiple currencies, either through exports and imports, or through foreign operations.
- Commodity Price Risk is the financial risk posed to an entity’s financial performance and profitability by fluctuations in commodity prices that are primarily driven by external market forces and are therefore beyond the entity’s control.
- Interest Rate Risk management for companies involves identifying, measuring, and managing the potential impact of changes in interest rates on a company’s financial position and profitability.