Range-bound Rand
The rand has been looking comfortable between the R17.80 to R18.00 range, with the market moving in a very narrow range for most of the day. Late afternoon we have seen an increase in market movement, with the rand testing the R18.00 handle. The Greenback lost more ground against other majors early today but is grinding back late afternoon as markets perhaps look to close off positions ahead of the long weekend. ISM Non-Manufacturing data also came in below expectations after Manufacturing PMI dropped the ball on Monday.
Labour market showing cracks
The US has numerous measures which indicate the strength of the labour market, but over the past few weeks, we have seen job openings decline, and jobless claims increase. This afternoon the private sector ADP number came in well below expectations, which is generally a good indication for Non-Farm payrolls. On Friday, markets will be closed when the NFP numbers are released, which could create some market volatility. The expectation of the adding 240,000 jobs being added during March could be difficult, with recent data pointing to the number disappointing expectations as well.
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