ISM Services better than expected
US February ISM Services came out at 55.1 versus 54.5 expected. This means services are continuing to expand in the US, and things like dining out and paid vacations are continuing to grow, although it seems that consumer confidence is lower. After trading on the backfoot for the most of the day, the dollar is currently trading stronger after the ISM. Treasury yields in the short end are up again with the 2Y yields just shy of 5%, currently up at 4.92% after dipping below 4.9% overnight. The peak rate of 5% suddenly is not as far-fetched, and the market continues to price for the "higher for longer" sentiment.
WTI under pressure
WTI crude oil sank 2.75% after a headline that the UAE is looking to exit OPEC. There is continued rift between Saudi Arabia and the UAE and this has placed pressure on the price of WTI crude.
Rand in range
The USDZAR will end the week better than where we started but still way off middle Jan levels. Currently, USDZAR sits at R18.16 and we will require a sustained break below R18.12 to see the rand stronger. US data out next week will be key to see if the break is possible
