Walking in this morning, we see that the Rand continued with the spirited rally it had at the latter part of Friday’s trade. The weak non-farm payroll numbers out of the US have caused the US dollar to weaken, and EM currencies reaped the benefit. At the start of the week, it seems that the Rand is on the front foot trading at R14.87, but it could be sticky on the way down as the R14.8000 level is a big one to break.
After the rollercoaster that was the commodity market last week, early morning trading out of Asia has been positive for Commodities. Gold, Platinum, and Palladium are all firmer this morning trading at $1814, $1134, and $2343 per ounce respectively. Brent Crude has broken back over the $60 per barrel level and is currently trading at $60.02.
As we stated earlier, the disappointing numbers from the US non-farm payrolls have caused the US dollar to slip from the 1.1960 level we saw on Friday. The Greenback is currently trading at 1.2038 against the Euro and should be the key driver for markets this week as the data cupboard is relatively bare this week. The highlight is the US inflation number out on Wednesday, which will pique the market’s interest, but will become a prominent number should the $ 1.9 trillion stimulus package pass. Wall Street ended the week on a positive note and should be a boon for risk sentiment as we start the week. For now, we would look to the US dollar to determine the direction, but we could see range trading again this week.