SA GDP
The local economy grew by 1.6% quarter-on-quarter in Q3 of 2022. After the negative growth in Q2 of 2022, partly due to the floods in KZN in April, means that South Africa avoided a technical recession. This is all upbeat for now, but the South African economy is still not growing at a pace fast enough to create more jobs. Markets barely reacted to the print as the rand remained within a 10-cent range for the most part of the day and is currently trading around the R17.30 handle.
PMI data provided short-term gains
Yesterday’s PMI number did boost the dollar after trading a couple of sessions on the back foot, but the momentum was short-lived. Across the board, the dollar has given up most of the ground it had gained back late yesterday, and we could see the market start to focus on next week's CPI print. The dollar currently trades at 1.0510 against the euro, 1.2190 versus the pound, and the Yen is quoted at 136.40. Bonds yields in the US have opened lower after the rally we saw overnight. At the moment, the 10yr yield is quoted at 3.56%, while the 2yr yield is up at 4.38%. As mentioned, the focus will shift to next week’s Fed meeting and the interest rate announcement that follows.
#TechnicalRecession #FinancialMarkets #Economy
