This week’s market update highlights continued stability in local and global markets amid renewed U.S.-China trade negotiations and anticipation around upcoming U.S. inflation data.
Currency strategist André Cilliers notes that the resumption of trade discussions in London between the U.S. and China is being closely watched, particularly regarding rare earth metals. Market sentiment appears cautiously optimistic, with the oil price reflecting expectations of improved global growth should talks proceed positively.
Domestically, the rand remains firm, benefiting from a weaker U.S. dollar and stable political dynamics under the Government of National Unity. The local currency has been trading comfortably within the R17.75–R18.25 range, with no immediate triggers expected to disrupt this trajectory.
Internationally, attention turns to U.S. inflation figures due this week. As the final inflation print before the upcoming Federal Reserve meeting, the data may influence the Fed’s next interest rate decision. While only a moderate rise in inflation is expected, its outcome—paired with the status of trade discussions—could shape future monetary policy moves.
With both global and local indicators relatively stable, markets may remain in a holding pattern, barring any unexpected developments in trade or inflation dynamics.