Daily Market Report
Today’s market commentary from Andre Botha, Senior Currency Dealer at TreasuryONE:
The US and China yesterday agreed to lift tariffs in phases if the trade deal is signed. The subsequent risk on sentiment saw EM currencies firm and Gold fall sharply. Gold lost almost two per cent overnight and is trading at $1 469.50 this morning.
The Rand firmed from 14.8200 levels to almost 14.6600 but was unable to sustain the break below the 14.7000 technical levels and is at 14.7575 this morning. Eskom implemented rolling blackouts last night which could see the Rand on the backfoot today. News of Moody’s downgrading India’s ratings outlook from “stable” to “negative” also stemmed the EM markets strength. The Pound slipped yesterday after the BOE kept interest rates on hold but said that they would look at easing if growth and Brexit concerns persist.
The Dollar is currently trading at 1.2815 against the Pound and 1.1050 against the Euro. Wall Street closed in the green on the trade optimism while stocks in the Far East are trading higher. The JSE All Share was down 0.29% yesterday.
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