Dollar trading firm
The dollar is trading with new wind in its sails as Treasury Yields continue to rise. The 2yr yield has edged up to 4.92%, while the 10yr yield is up at 4.07%, creating the most inverted yield curve since the early 1980s. The market is seemingly pricing in that inflation is here to stay and that the Fed will need to keep Rates higher for longer, with the possibility of a 50bps hike during the March meeting rising.
Range bound Rand
Locally we have been mostly wedged in the R18.12 to R18.25 range for the day, with rising Treasury Yields creating a risk-off tone for EMs. The dollar index is ticking up as the dollar firms against its major peers. The move in the dollar could halt the rand from gaining any more momentum, and a break below R18.12 is needed for the rand to continue its path of redemption to levels seen during the earlier part of this year.
Copper leading the metal sector
Copper is down 2.4% for the day, with economic uncertainty weighing down the supply shortage and longer-term expected demand. The metal is currently trading below $8,900 and has been seen in the past as a barometer of economic health. Gold is mostly flat for the day, while platinum and palladium are softer.
