31 Dec

Daily Market Report 31 Dec

Dollar looks to end the year on a high
The Dollar DXY index is sitting at 108.00, with the Dollar trading marginally softer against the Euro and Pound while the Yen is 0.4% firmer as US bond yields ease off slightly. The greenback will still end the year on a stronger note, with the DXY up around 7.0% for the year. A slower pace of Fed rate cuts, expected inflationary policies from incoming President Donald Trump, and ongoing global geopolitical events are all contributing to the rise in the Dollar. After a steady start to trading in the EM space yesterday, markets came under pressure, with the Rand moving sharply from around R18.70 to back above the R18.80 mark. Moves are being exaggerated by the thin liquidity and we should see some stability return to the Rand come next week.

Gold holding just above $2,600 but is heading for its best year in a decade
Gold is trading softer at $2,605 as the firmer Dollar weighs, but it remains on track for its best run in over 10 years with an annual gain of around 26.0%. Platinum and Palladium are both trading relatively flat, while base metals are all in the green as China’s manufacturing activity increases. Brent crude is also firmer on the back of the Chinese data and is currently quoted at $74.60.

 

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