Markets range-bound ahead of Fed
The rand has traded fairly range bound this week, even though the SARB surprised with a 25bps hike yesterday afternoon. We have traded sideways between the R17.05 to R17.30 range for most of the week, with the dollar tracking sideways against most of its peers. The dollar is ending the week slightly up against the euro and pound, with the market patiently waiting for the first FOMC meeting of 2023 next week. US Core PCE came out in line with expectations this afternoon, supporting the hawkish commentary by Fed officials earlier in the week. The FOMC could be the next catalyst for markets, pushing it out of the range-bound trading we have seen recently.
Palladium under pressure, gold slightly down
The increasing element of recession fears has weighed down palladium prices, with the metal down 2.8% on the day. Palladium is the most industrial demand focussed metal, and lower expected global demand is currently providing strong headwinds for the PGM. Brent Crude is ending the week on the front foot, closing in on the $90 mark.
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