Daily Market Report 10 Sep
Dollar firms ahead of CPI
The DXY index is up at 101.71 this morning after starting the week at 101.19, with markets eyeing tomorrow’s US CPI data and its possible impact on next week’s Fed FOMC meeting. The Euro has slipped to 1.1040, the Pound is down to 1.3079, and the Yen is back above the 143.00 mark. Markets are betting on a 25bps rate cut by the Fed as inflation and the labor market continue to cool. Risk sentiment remains relatively neutral in the run-up to the FOMC, with the only real volatility coming in equity markets. Wall Street closed over 1.0% stronger across all three major indices last night as it recouped some of its recent significant losses. The Rand kept to a very narrow trading range yesterday and closed flat on the day at R17.86. This morning, the local currency opened unchanged despite the firmer dollar against the majors. China’s trade balance surprised to the top side, with exports growing above expectations, but imports were down.
Small gains for precious metals, but oil continues to struggle
Gold managed to close back above the $2,500 mark last night, while there were gains for both Platinum and Palladium. Base metals are a touch softer, with only Nickel in the green this morning. Brent crude continues to trade below the $72.00 level despite possible supply disruptions due to tropical storm Francine in the Gulf. Chinese demand concerns are weighing heavily on oil and off-setting any supply concerns.
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