Some GNU scepticism and weaker EMs weigh on rand
The rand is trading weaker at R18.39 this morning on what seems to be a 'buy the rumour, sell the fact' move, with the currency initially firming to below R18.00 early yesterday before weakening steadily throughout the day and closing at R18.36.
Source: Reuters.
The GNU remains a fragile agreement and investors are concerned over the many obstacles that need to be overcome going forward. The dollar is also firmer and EM currencies softer this morning which is contributing to the weaker rand.
The DXY index is back at 105.90 levels, with the euro, pound and yen all opening on a weaker note despite yesterday's disappointing US manufacturing data. Today, we have the US JOLTs job openings number, while both Jerome Powell and Francine Lagarde will be speaking later.
Metals drop, oil firmer
Gold, Platinum, and Palladium have all opened on a softer note this morning on the back of the firmer Dollar but are generally keeping within narrow ranges ahead of Friday's payrolls and unemployment data.
The prospect of increased demand has seen the price of oil steadily rise over the last few days and we currently have Brent crude trading 0.3% higher at $86.83. Possible disruptions to supply in the US due to Hurricane Beryl are further supporting oil.
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.
