Daily Market Report 26 Sep
Dollar makes back some ground ahead of Fedspeak and PCE data
The Dollar ended firmer yesterday after trading on the back foot for most of the day as traders trimmed some short Dollar positions ahead of speeches from a whole host of Fed FOMC members, including Jerome Powell, later today. Markets will also be watching today’s US jobless claims and final US Q2 GDP numbers, while tomorrow, we have the PCE price index. Bets on another 50bps rate cut by the Fed at its November meeting currently stands at around 60%, and this is likely to restrict further Dollar strength in the short term. The DXY index recovered from its 100.28 opening to close at 100.91, with the Euro and Pound falling quite sharply. Currently we have the Euro trading at 1.1147, the Pound at 1.3348, and the Yen at 144.75. The Rand traded in a quite broad 23-cent range yesterday, touching a best intraday level of R17.13 before closing at R17.25 as the Dollar bounced. The local currency is trading a touch firmer at R17.20 this morning, in line with slightly stronger EM markets. Look out for our local PPI data due out later today.
Gold steady, Oil weaker
Gold is holding steady at just below its record high of $2,670.43 as the geopolitical tensions and rate cut optimism continue to see demand for the metal. Platinum and Palladium are both trading over 1.0% stronger at $999 and $1,055, respectively, while base metals have opened relatively flat. Brent crude is trading weaker at $72.83 this morning despite the planned Chinese stimulus and lower US inventories as Libyan oil supply is set to return.
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