Risk-off still in evidence
Today we have seen a bit of follow-through from Friday's risk-off sentiment as the Rand reacted to a stronger US dollar. The Rand started the day around the R17.45 level but has weakened past the crucial R17.50 level and is currently trading at R17.60 against the US dollar. Similarly, the US dollar has strengthened back to 1.0750 against the Euro, and it is not too long ago that the US dollar was trading at 1.0950. With a host of Fed speakers speaking this week, we expect the market to listen very closely to the tone of their speeches to get an inkling of what the Fed is thinking.
Commodities under pressure
The stronger US dollar has caused a few ruffled feathers in the commodity space, with Gold now trading comfortably below the $1,900 level at $1,872 per ounce. Not long ago, the yellow metal traded northwards for $1,950 per ounce. Palladium has been the biggest loser for the day, with the metal trading at $1,570 per ounce. Brent Crude has failed to break the $90 barrier in the last couple of weeks, has slid toward $80 per barrel, and is currently trading at $81 per barrel.
#ExchangeRate #FinancialMarkets #Currency #gold
