The Dollar has started the new week on the front foot as good US economic data last week reduced the likelihood of further interest rate cuts by the Fed for now. The Dollar is trading at 1.1097 against the Euro and 1.3002 against the Pound. Markets are likely to keep a close watch on rising geopolitical tensions in Libya, Lebanon and Iran. We also have the World Economic Forum in Davos this week.
SAA’s financial woes continue as Sunday’s deadline for additional funding to keep the airline operational passed without the promised Government bailout being forthcoming. The Rand is on the backfoot this morning at 14.4580 having traded above 14.5000 earlier in the Far East.
Wall Street closed higher on Friday across all three indices while stocks in Asia, with the exception of the Hang Seng, are trading in the green. The JSE All Share closed 1.35% up on Friday as well. US markets will be closed for Martin Luther King day today.
Gold and Platinum are holding steady at $1 560.00 and $1 029.25 this morning while Palladium is trading just below Friday’s record high at $2 505.50.
By Andre Botha, Senior Currency Dealer, TreasuryONE