The Rand followed it’s EM peers weaker yesterday, with big losses for the Russian Ruble, Turkish Lira, and the Brazilian Real. The Rand closed above the 17.5000-level last night and is trading unchanged this morning at 17.5050. That despite the weaker Dollar and the rally in the Gold price. EM markets are likely to remain under pressure given the heightened tensions between China and the US as well as concerns over the US economic recovery.
Gold rallied yesterday closing sharply up at $1 985 and is trading even firmer this morning at $1 991 on the back of the softer Dollar. Platinum is up 1.25% this morning, but Palladium is down by over 1.0%. Oil is also a touch lower this morning at $42.74 and $45.27 for WTI and Brent respectively.
The DXY Dollar index has slipped to 92.64 today, with the Dollar falling to 1.1894 against the Euro and 1.3138 against the Pound. The greenback is also weaker against the Aussie Dollar, Swiss franc, and Chinese Yuan. President Trump imposed further restrictions on Huawei yesterday while the US stimulus package negotiations remain unresolved for now. Wall Street finished mixed yesterday with the Dow being the only loser. US futures are flat this morning, and Asian markets are mixed but relatively flat. Trading seems subdued as investors look for direction.