US inflation came in bang on the expected 6% y-on-y for Feb. US core inflation is also on the number at 5.5%. This gives the Fed the option to do no hikes rates at its next meeting next week, given the state of the banking system in the US. We have seen that the Us dollar is trading above 1.0700, which suggests that the market has moved out of US dollars and into Gold which is another safe haven. The Rand has enjoyed the move out of the US dollar and is currently trading at R18.1100, with its sights firmly set on breaking the R18.0000 level. Tomorrow we have US retail sales and it could show that the US consumer is under pressure as the expectation is for a negative 0.3% print, which would give the Fed more reason not to hike rates. We have seen the Banks sector recovering today with US Markets bouncing from the sell-off, while the US yield curves are making up some of the losses from yesterday.
#Inflation #Fed #InterestRate #BankingCrisis #ZAR #CurrencyMarkets
