The phase one trade deal between China and the US was signed last night and will see China buy an additional $200 billion worth of US goods but there is no change in existing tariffs. US stock markets closed higher while the Dollar slipped against the Euro and Pound. Stocks in Asia are mixed this morning as investors dissect the details of the partial trade deal. The Dollar is trading at 1.1155 against the Euro and 1.3050 against the Pound this morning.
The Rand is off it’s weaker levels at 14.3840 ahead of today’s Reserve Bank interest rate decision. The MPC is expected to keep the repo rate at 6.50% despite low inflation and poor GDP data. We also have Mining and Gold production numbers out later today.
Gold is holding steady at $1 556.27 while Platinum is up at $1 023.10 this morning. Palladium traded at a new record high of $2 284.55 in the Far East today.
Look out for US Retail sales data and the ECB’s Christine Lagarde speaking later this afternoon.
By Andre Botha, Senior Currency Dealer, TreasuryONE