Dollar holding on to Friday’s gains
The Dollar is trading a touch firmer this morning as it builds on Friday’s gains against the major currencies. The Dollar was boosted by stronger manufacturing and services PMI data on Friday. The DXY index is up at 105.84 this morning with the greenback at 1.0698 against the Euro, 1.2653 against the Pound, and 159.78 against the Yen. The Yen traded very close to the 160.00 level earlier this morning before concerns over possible Bank of Japan intervention saw the currency pull back. The big data number this week is Friday’s PCE price index, with markets hoping for some signs of moderation in US inflation.

No new news on the local political front sees some profit-taking on the Rand
The Rand opened softer at 18.02 this morning on the back of the firmer Dollar and lack of news on the makeup of the new Cabinet. The President was expected to make an announcement yesterday, but negotiations between the various parties are still ongoing. We have expected some consolidation in the Rand at current levels given the recent strong run, which saw the Rand outperform all other currencies.

Gold opens a touch firmer after falling sharply on Friday
Gold is trading at $2,326 this morning as it recovers from Friday’s fall which saw the yellow metal lose 1.7% on the day as the Dollar firmed. Platinum and Palladium are holding fairly steady while Copper is a touch stronger. Brent crude opened below the $85.00 earlier this morning but has managed to recover and currently sits at $85.20, with traders still monitoring the geopolitical situation in the Middle East.