Daily Market Report 17 Sep
Dollar softer in anticipation of a larger Fed rate cut
Markets have started positioning themselves for a 50bps rate cut by the Fed at tomorrow’s FOMC, pushing the Euro back above 1.1100 and the Pound to above 1.3200. Bets of a 50BPS cut are now at 68%, with markets now also pricing in a total of 100bps this year. Today we have the US retail sales data release with estimates of -0.2% versus last month’s 1.0%. Global equity markets and US futures are mixed this morning, while EM currencies have opened a touch softer after having closed stronger last night. The Rand is currently sitting near the bottom of its recent range at R17.64, with the R17.60 mark still proving a difficult hurdle to further strength.
Gold holding just below record levels
Gold is holding steady at $2,576 this morning after having hit a fresh all-time high of $2,589.59 yesterday. Gold continues to benefit from the prospect of deeper rate cuts by the Fed and on the back of the softer Dollar. Platinum lost some ground yesterday, falling back below the $1,000 mark while Palladium continues to strengthen. Brent crude is back above $73.00 on the back of US supply concerns and lower US inventories.
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