EM currencies are trading on the front foot this morning despite inflationary concerns, a stronger dollar, and an uptick in bond yields. The easing of political tensions between Turkey and the US has seen the Turkish Lira recover, which boosted EM markets. The rand closed stronger at R14.70 yesterday after having weakened to R14.88 at one point in the morning. The rand has opened unchanged at the R14.70 level this morning.
A good day for metals yesterday, with Gold, Platinum, Palladium, and Copper all closing higher on the day. Gold is a touch softer this morning at $1,806, Platinum lower at $1,059, and Palladium flat at $2,057. Increased global demand along with constrained supply has seen Oil reach multi-year highs. Brent is up at $86.25 and WTI up at $83.90 this morning.
The dollar is trading slightly firmer this morning as the US yield curve steepens, inflationary fears persist, and corporate earnings rise. The DXY index is up at 93.85, with the dollar trading at 1.1603 against the euro, 1.3759 against the pound, and 113.97 against the Yen. The 30y bond yield is higher at 2.09%, the 10y yield up at 1.64%, while the 2y-yield is lower at 0.43%. The Dow and the S&P finished at record closing highs last night while the Nasdaq closed 0.9% stronger as positive corporate earnings reports drove markets higher. Today we have both Alphabet and Microsoft releasing their results as well. Asian markets are mixed with a strong gain in the Nikkei but losses for both the Shanghai and Hang Seng bourses while US futures are all in the green. The local ALSI ended the day relatively unchanged at 66,980 as gains in the Financial and Resources sectors were offset by losses in the Industrials.