Week starts off being risk-off

With the amount of economic data and events this week, we have seen the market being decidedly risk-off. We have seen US treasury yields higher as the market is trying to determine what might happen this week. This week we have the Fed with its interest rate decision and the ECB with its interest rate decision and to cap the week of the US non-farm payroll number. Each of these events has got the potential to cause some serious moves in the market depending on the tone struck by the data and the events. 

Rand and other emerging markets under pressure

We have seen the Rand trading weaker and was almost at the R17.40 level but has since retreated and is currently trading at R17.34. The dollar is on the front foot versus the emerging market and other commodity currencies ahead of the FOMC. Commodities are also trading slightly weaker, echoing the uncertain sentiment that hovers over the market at the start of the week. Palladium is seeing stagnant demand, and platinum is following palladium lower. Gold is down from its multi-year high and trading at $1,936 per ounce as investors will await the Fed. 

#Treasury #InterestRateRiskManagement #EuropeanCentralBank