The rand closed weaker at R14.80 yesterday after having tested the R14.85 technical level earlier. A stronger Dollar and softer commodity prices have put some pressure on emerging market currencies, and the rand has weakened further this morning to be trading at R14.86 in the Far East. A sustained break above R14.85/R14.90 levels would open the way for further weakness to R15.00.
Gold, Platinum, and Palladium all closed weaker yesterday and have opened even lower this morning. Gold is currently at $1,788, Platinum at $1,030, and Palladium at $2,016. The prices of Brent and WTI have slipped off their best levels and are trading around 0.6% softer this morning after a jump in US stockpiles. Brent is currently quoted at $85.95 and WTI at $84.08.
The dollar is holding steady ahead of the ECB meeting this week. The euro is hovering just above 1.1600, and the pound is at 1.3768 while the DXY index is at 93.95. US long bond yields firmed slightly yesterday while the short end eased a bit, flattening the curve. The 30y-yield is at 2.05%, the 10y at 1.62%, and the 2y at 0.5%. Wall Street closed relatively flat last night after Microsoft’s results disappointed. The US futures have opened flat while Asian markets are weaker this morning, with the Shanghai and Hang Seng down by over 1.0%. The local ALSI closed 0.95% stronger at 67,615 with all sectors in the green.