The Dollar continues to hold firm against both the Euro and Pound due to its safe-haven status. The Greenback is currently trading at 1.0910 against the Euro and 1.2915 against the Pound ahead of Fed Chairman Jerome Powell’s testimony before Congress today and tomorrow. Powell is expected to highlight the strength of the US economy but keep a fairly dovish tone on interest rates due to the uncertainty around the impact of the Coronavirus on the global economy.
Markets have recovered slightly overnight and we have the Rand trading firmer this morning at 14.9725. This is despite the ongoing Eskom woes and the upcoming SONA and Budget speeches.
Wall Street staged a fairly strong recovery with the S&P up 0.73%, the Dow up 0.60% and the Nasdaq up 1.13%. The Hang Seng and Shanghai indices have also closed higher this morning. The JSE All-Share index was down 0.75% yesterday.
Gold is steady but off yesterday’s levels at $1 569.35 while the Platinum and Palladium prices are unchanged. Oil is a touch lower at $53.95.
By Andre Botha, Senior Currency Dealer, TreasuryONE