The Rand traded as weak as 16.9456 yesterday in the wake of the US GDP and Jobless claims numbers which saw risk aversion grow in EM currencies. The Rand managed to recover to below the 16.8500 technical levels as the Dollar weakened and closed at 16.7565, which is where we find ourselves this morning. Local PPI data came out below forecasts, reinforcing the subdued inflation outlook while today we await the release of our trade balance. The JSE lost 1.52% yesterday in line with global stock markets.
Gold remains the favoured asset in these risk-off times and is trading firmer this morning at $1 968.15. Platinum and Palladium have paused their declines of the last few days, up 0.5% and 0.6% respectively this morning. Oil is around 0.5% higher this morning at $40.14 for WTI and $43.15 for Brent Crude.
The sell-off in the Dollar continues unabated, driven by growing fears over the outlook of the US economy due to the Coronavirus impact. Yesterday’s record 32.9% contraction in Q2 GDP and the pick up in the number of new jobless claims heightened investors’ concerns. The Dollar hit 1.1904 against the Euro and 1.3142 against the Pound earlier this morning. The DXY index is down at 92.657 today, having fallen 4.9% in the month so far. Global stock markets have closed in the red last and this morning, the exception being the tech-heavy Nasdaq which managed a 0.43% gain.
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