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Daily Dose

1 March 2021

Good morning,

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On the wires

  • Trump vows to unite Republicans
  • US calls on AU to exert pressure over worsening crisis in Tigray
  • Assailants free 42 people kidnapped from Nigeria school
  • SA moves to Level 1
  • SIU investigates Eskom R2 billion
  • Brandon Grace wins Puerto Rico Open

Two cents worth…

“Cowards die many times before their actual deaths”- Julius Caesar

Currency Crackdown...

FXOne would like to thank Jan Sluis- Cremer from RMB Global Markets for his contribution to the crackdown this morning.

The start of a new month. The President last night downgrading our lockdown to level one from level three in an effort to get the economy back on track as new coronavirus cases decrease from the devastation of December’s and January’s second wave that gripped the country.

The rand on Friday having a very volatile session in line with our fellow Emerging Market peers. The local unit trading in 14.80 to 15.20 range after Thursday’s aggressive sell off. The risk off came from an aggressive sell off in US treasuries and stock markets also coming under pressure as investors dumped riskier assets for the first time in nearly a month. US Treasuries trading at their highest level in over a year which has rattled markets.

This morning in the Asian session the dollar has sold off marginally against its G-10 peers as lower US Treasuries in late New York trade helped restore some calm to markets this morning. The Australian dollar being the leader of the pack after their central bank doubled its bond purchases in an effort to calm the market.

The rand starts the week off at 15.00 to the green back after Fridays close of 15.12 in New York. For now, we look to trade the broader range. 14.90 to 15.10 trades for now.

Against the crosses, the rand also losing some ground with Eur/Zar kicking off at 18.10 while Gbp/Zar is 20.95.

On the data front the day gets going at 10:00 when Germany begin to release their Federal State CPI numbers for February. 11:00 we return to local soil for Februarys manufacturing PMI index. Also, at 11:00 the Euro zone release their manufacturing PMI number. 16:45 focus turns to the US for their manufacturing PMI number and the day is finished off at 17:00 with US ISM numbers for February. 

On the radar…

  • All – Global vaccine updates
  • US- ISM and manufacturing PMI
  • SA- manufacturing PMI
  • US- construction spending


Did you know?

Sloths can hold their breath longer than Dolphins can. They can hold their breath for up to 40 minutes.

 

Have a good month,

Wayne

 

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