The phase one trade deal will be signed later today but market optimism has waned on news that US tariffs will probably not be rolled back until a phase two deal is agreed. Wall Street, which was trading at record highs before the headline, closed marginally down and Asian stocks are all in the red this morning as investors await clarification of the exact details of the phase one deal.
US CPI out yesterday was below market expectations and US Treasury yields are lower this morning. The Dollar is trading slightly weaker against both the Euro and Pound at 1.1135 and 1.3028 respectively this morning. The Rand traded close to the 14.5000 level yesterday before recovering back to 14.4000 which is where we find ourselves this morning. The Rand has moved from being the best performing EM currency to now being the worst. The Chinese Yuan has retreated from the last few day’s best levels and is quoted at 6.8946.
The Gold price has risen in the Far East this morning to $1 552.70 on the tariff headline. Platinum and Palladium have also gained to be trading at $991.34 and $2 198.15 respectively.
Local retail sales figures out later today.
By Andre Botha, Senior Currency Dealer, TreasuryONE