Daily Market Report 23 Sep
Dollar opens flat ahead of a data-filled week
The Dollar is starting the new week trading largely unchanged from Friday’s softer closing levels ahead of today’s US manufacturing and services PMI numbers. Later this week, we will have the final US Q2 GDP revision, durable goods data, jobless claims, and the Fed’s favored inflation indicator, the PCE price index. We also have a number of Fed officials talking this week including Jerome Powell on Thursday. The DXY index is currently quoted at 100.80, with the Dollar trading at 1.1165 against the Euro, 1.3315 against the Pound, and 144.20 against the Yen. The Yen is on the back foot due to some less hawkish comments from the Bank of Japan governor. The escalating geopolitical tensions between Israel and Hezbollah are also being closely monitored. EM currencies remain quite stable with the Rand trading firmer at R17.39 this morning as it heads for a 9th consecutive day of gains. The local currency is benefitting from the positive sentiment in the wake of the Fed and SARB rate cuts, as well as the record-breaking surge in the Gold price. We do expect some sort of consolidation and possible correction in the Rand in the short term.
Gold surges to new record high
The Gold price traded at a new all-time high of $2,630.93 earlier this morning on the back of safe-haven demand due to the rising Middle East tensions as well as the continued positive sentiment in the wake of the jumbo Fed rate cut. Platinum and Palladium have opened on a softer note while Brent crude is up at $75.05. The Middle East tensions and lower global interest rates are currently underpinning the price.
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