A surge in new Coronavirus cases has seen risk appetite wane and a stronger Dollar and Gold price. Fed Chair Jerome Powell stated last night that low-interest rates are a reality and are here to stay. He further stated that the Fed would continue with large scale bond buying for the foreseeable future.
The Dollar is trading at 1.0870 against the Euro and 1.2952 against the Pound. The Rand has slipped to 14.9325 as riskier EM currencies get sold off. All eyes will be on Cyril Ramaphosa’s SONA address tonight.
Wall Street closed higher yesterday but American futures are negative this morning. Asian stocks have been sold off this morning as the spread of the virus fears grows.
Gold is up at $1 573.50 while Oil is at $55.80.
By Andre Botha, Senior Currency Dealer, TreasuryONE