Currency update

Bullish sentiment on the dollar has eased during the day, and we see the rand and other currencies trading on the front foot this afternoon, with the dollar index back below 109. Overnight the rand rallied from Friday’s close to the higher R16.90’s but has tracked lower during the course of the day and aiming at a close below R16.85. The euro is up 0.6% at the moment and back above parity as the market ease away from the bullish sentiment left at Jackson Hole last week. We can expect the dollar to still remain upbeat as we head further into the week, with Euro CPI and US Payrolls numbers likely to be the highlight.

Other markets

Commodities have been reasonably stable, with metals closing the day currently in the green. Brent Crude has jumped 2.5%, trading above the $103 mark again as possible OPEC+ production cuts are still the main driving force. Equity markets have been under pressure during the day, and we see the US equity markets under pressure as well. Treasury Yields across all tenors are up this afternoon, with the 10yr quoted at 3.12% while the 2yr yield is at 3.41%.