2 Jan

Daily Market Report 2 Jan

Dollar starts 2025 on a high
The new trading year has started with the Dollar still very much in the ascendency. Markets are facing a slower pace of Fed rate cuts, high US bond yields, the incoming Trump administration with its likely inflationary policies, and ongoing global geopolitical turmoil. The DXY index currently sits at 108.35, with the Dollar trading at 1.0367 against the Euro and at 1.2534 against the Pound. The Yen is near a 5-month low at 157.10, and with Japanese markets closed until next week, we can still see further weakness. Look out for today’s US jobless claims and manufacturing PMI data for clues on the state of the US economy and labor market. China’s Caixin PMI data disappointed this morning, coming in at 50.5 compared to market estimates of 51.6, reflecting the continued weakness in the economy. The Rand is trading firmer at R18.82 this morning after having weakened to above the R18.90 level yesterday. The short-term outlook for the local currency remains negative as international factors and the strength of the Dollar weigh.  

Precious metals and Oil prices open higher
Gold is trading 0.45% higher at $2,635, with the metal gaining support from a World Gold Council report that major central banks are expected to increase Gold purchases this year. Platinum and Palladium are trading around 1.0% higher at $915 and $920, respectively. Brent crude climbed to above $75.00 on the back of the lower US stockpiles earlier but has fallen back to $74.85 after the weaker Chinese manufacturing data.

Why Choose TreasuryONE?

Minimise the impact of market volatility on your bottom line by getting access to an experienced team of dealers that provides expert market advice – validated by facts and figures, not feelings or hearsay.

We customise risk management strategies to achieve the most competitive rates in a fast-moving and complex marketplace.

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.