New cabinet after GNU agreement
1 Jul 2024
The newly expanded 32-minister cabinet was finally revealed by President Ramaphaosa last night, made up of 21 ANC members and 11 from other parties.
Source: Reuters.
The rand opened around 0.5% stronger at R18.09 against the dollar this morning on the back of the GNU news, and it has a softer dollar while it is steady against the euro and pound. After the local market and European markets open, we will have to wait and see if there is any further strength in the rand.
Dollar will look at the data
The DXY index has eased back to 105.60 this morning as rate-cut bets increase. The Yen however remains on the back foot at 161.01 with still no sign of any intervention from the Bank of Japan.
Today's US manufacturing PMI number will be closely watched by markets while the big data releases this week will be the Fed minutes release on Wednesday and Friday's nonfarm payrolls and unemployment numbers. We also have Jerome Powell talking tomorrow and the US market will be closed on Thursday. The UK is also having their election on Thursday, a potential market-moving event. All these events can be market-moving.
Gold dips, oil rises
Gold has edged a little lower to $2,320 despite the softer dollar and increased rate-cut hopes, while Platinum and Palladium are trading reasonably flat. Brent crude has opened at around 0.5% higher, but gains are likely to be limited as Chinese economic data once again disappointed with manufacturing PMI shrinking for the second month.
About Andre Cilliers
Andre is the Currency Risk Strategist at TreasuryONE. Andre's career in treasury spans more than 30 years. He has gained his extensive currency risk experience in both the banking and corporate arena. Before joining TreasuryONE, Andre headed up the treasury department for a Tier One German international bank in South Africa.
Related
