Trump assassination attempt and weak Chinese growth data boost the dollar
15 Jul 2024
Safe-haven demand in the wake of the attempt on Donald Trump's life over the weekend, along with the weaker Chinese Q2 GDP number this morning, have seen the greenback make back some of last week's losses.
Source: Reuters.
Trump is still expected to attend this week's Republican convention, where he is likely to be nominated as the party's presidential candidate.
Data released this morning showed China's economy only growing at 4.7% versus market estimates of 5.1% in Q2. However, industrial production for last month grew at an above-expected 5.3%.
The DXY index is higher at 104.22 this morning with the dollar trading at 1.0895 against the euro, at 1.2980 against the pound, and at 157.92 against the yen.
Asian and EM currencies have started the new trading week on a softer note, and we have the rand sitting at R18.00 in early morning trade. The rand is expected to take its cue from international moves but to remain in a fairly tight range for now. There is not much on the US data front this week, but we do have Powell speaking again this afternoon while the ECB interest-rate decision is later this week.
Gold and oil unchanged
Gold opened flat at $2,412 this morning despite the slightly firmer dollar, while both Platinum and Palladium are trading softer. The impact of the disappointing Chinese GDP number has largely been offset by news of the suspension of talks between Israel and Hamas, and Brent crude is trading marginally firmer at $85.20.
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.
