Currency markets are largely unchanged this morning with the Dollar trading a touch firmer against the Euro and flat against the Pound. US economic data yesterday showed strong retail sales and manufacturing numbers while jobless claims were lower than forecast. Chinese GDP came out as expected at 6.1% growth in 2019 and the Yuan has firmed to 6.8715 this morning.
The South African Reserve Bank surprisingly lowered the repo rate by 0.25% to 6.25% yesterday and we saw the Rand initially weaken up to 14.4300 levels before settling back to 14.4000 where we find ourselves this morning. The Rand is likely to keep to a 14.3000/14.5000 range in the short term.
Wall Street surged on the strong US data with the Dow up by 0.92%, the S&P up 0.84% and the Nasdaq up 1.06%. The JSE All-share index closed 0.26% higher after the rate cut and we could see further gains today. Asian stocks are trading fairly flat this morning.
Precious metals are trading off their highs of yesterday with Gold at $1 556.30, Platinum at $1 013.60 and Palladium at $2 335.20.
By Andre Botha, Senior Currency Dealer, TreasuryONE