Market trading sideways ahead of busy week

Currency markets traded sideways today with the data-filled week ahead of us. The Euro managed to breach the 1.10 level while the other majors are relatively flat for the day. The rand continues with the current range between R18.00 and R18.50, as local bond inflows remain lackluster. The US data could perhaps provide a pivotal view of future Fed Hikes, but the market is confident that the Fed will raise the interest rate by 25bps next week.

Commodity sector under pressure

Across the board, we have seen the commodity sector falling into a bear trap today, with Platinum and Palladium losing further ground during the day. Demand for PGMs like Platinum and Palladium is under pressure, with recession fears playing their part and the impact of central banks continuing to raise rates on the global economy. A similar story for WTI, which is trading at $74 per barrel, down 5% on the day, as global growth concerns and shrinking refining margins have been the key contributors. The outlook for diesel demand worldwide is also weakening, indicating weaker industrial activity and less consumer spending.

#ZAR #Markets #Commodities #InterestRate