Emerging market currencies are currently on the front foot as we have seen the US dollar sagging out against the Euro. The Rand is approaching the R14.8000 level which was the level were the Rand last had a major bounce from. We expect the Rand to be sticky around this level and we need another weak dollar day for the Rand to push below this level. For now we believe importers should look to buy some USD.
The positive momentum that we saw yesterday in the commodity space continued in the Asian session. Gold, Platinum and Palladium are all firmer this morning trading at $1,838, $1,180 and $2,348 per ounce respectively. Brent Crude has sustained the break of the $60 per barrel level and is currently trading at $61.06. Copper is also continuing to trade on the front foot and silver has calmed down a bit after the flurry of activity we saw last week.
The dollar is still sliding against most currency pairs and is currently looking odds on to test the 1.21 level against the Euro. Even though the Dollar is losing some ground it is still within the 1.2000/1.2150 range where it has been trading for the past couple of weeks. Any significant break out of this range will cause the market to respond but for now, the market seems happy trading the ranges. Risky Assets were buoyed yesterday as Wall Street ended the day in the green. The Dow Jones and S&P 500 closed up by nearly 1%. We expect another day of sideways trading in the market as we need a new wave of momentum to give us direction.