An exciting evening for the Rand as we saw the local currency trading wildly in a 15 cent range as the Rand bounced between R14.83 and R14.98 for most of the evening before settling around the R14.90 level. The reason for the volatility is that currently, there is some uncertainty in the market after the retail figures yesterday and the FOMC minutes later today. We can expect the market to trade rather nervously with all eyes fixed on the minutes.
Commodities are slowly starting to claw back some of the losses they suffered yesterday, with both Platinum and Palladium up by more than 1% this morning. Gold is trading at $ 1,789 per ounce, with Platinum and Palladium at $ 1,005 and $ 2,530 per ounce, respectively. Brent Crude is still hovering below the $70 per barrel level at $ 69.24.
We have seen the US dollar on the front foot in the late evening and early morning trade with the Greenback testing the 1.17 level again. We have seen the US dollar testing and failing at this level a couple of times already, which suggests this is a crucial level for the Dollar. We have seen US stock indices in the red last night, which again feeds into the notion of uncertainty and could lead to a choppy market today. As stated beforehand, we have the FOMC minutes this evening where the bulk of the risk lies. We can expect the market to run on any indication that the Fed will start to taper or hike rates sooner. The opposite is also true should the Fed turn a little more dovish.