The Rand is at 16.9475 this morning after closing at 16.9000 last night. The Rand has managed to resist a break above the 17.0000 yesterday and this morning, having weakened quite sharply on the back of the poor Q2 GDP number as well as the strong Dollar. Further Dollar strength could see the Rand test 17.2500 if we break decisively above 17.0000. EM currencies except for Brazil, are all a touch softer this morning as risk appetite dries up due to the sell-off in equity markets.
Precious metals are holding reasonably well this morning with Gold at $1 934 as investors move to safe-haven assets while Platinum and Palladium are both up around 0.25% today. Oil continues to fall on global demand concerns and in the wake of the Saudi price cuts. WTI is down 1.17% at $36.33 and Brent is down 0.93% at $39.41 this morning.
The bloodbath on Wall Street along with the falling Pound sees the Dollar holding onto yesterday’s gains. The Dollar is currently at 1.1782 against the Euro and 1.2970 against the Pound. Markets will be keeping a close eye on the ECB and Brexit developments over the next few days. The S&P fell 2.78%, the Dow 2.25%, and the Nasdaq a massive 4.11% with Asian markets following suit today as all indices are in the red. US futures are trading positive for now. The JSE All-share closed flat yesterday as Financials supported the index however we can expect losses today.