Oil continues to fall
Oil is down for a third straight day, with WTI oil below $70 a barrel. The prospect of the US recession and the spillover effects worldwide is curbing oil demand. OPEC+ members will loom to cut supply, and with inventories in the US falling by less than expected, will this halt the slide?
All eyes on the US Fed
Will Fed Chair Jerome Powell speak dovish or hawkish after the interest rate announcement is key this evening? The market is fully expecting the Fed to hike by 25bps. ADP job numbers came out better than expected today as there was a spur in private-sector hiring, although at slower pay growth. The slower pay growth could help tame inflation. The Fed will look at this after the JOLTS number disappointed yesterday to look at the labor market as still buoyant.
USDZAR recovering yesterday’s losses
The USDZAR is trading back at levels where we opened up yesterday and could rally this evening after the Fed interest rate. Still stuck in the R18.00 to R18.50 range and currently sitting at the pivotal R18.25 level, the rand could go either way this evening.
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