30 Dec

Daily Market Report 30 Dec

High yields and geopolitical unease keeping the Dollar on the front foot
The Dollar looks to end the year on a strong note as high US bond yields on ongoing geopolitical tensions weigh on risk sentiment. The 10-year yield is up near 8-month highs of 4.63%, despite recent Fed rate cuts. Geopolitical unease in the Middle East, Asia, and Africa, along with the collapse of both the French and German governments, are dampening risk appetite and seeing a move to the Dollar. The DXY index is currently at 108.00, with the Dollar trading at 1.0426 against the Euro, 1.2583 against the Pound, and 157.85 against the Yen. EM currencies are trading flat this morning, with the Rand sitting at R18.68. The Rand has had a torrid run of late but we did see a bit of a recovery on Friday on the back of some good exporter inflows.

Gold steady as safe-haven demand and Dollar strength offset each other
Gold is trading flat at $2,621 this morning as safe-haven demand due to the geopolitical tensions is offset by the strong Dollar and slower projected pace of Fed rate cuts. Platinum and Palladium are up around 0.25%, while Brent crude is trading higher at $74.24.

 

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