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Daily Dose

2 December 2020

Good Morning,

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On the wires

  • Eskom cuts power in Soweto, Vaal & West Rand to avoid network overloading
  • US probes 'bribery' scheme to seek White House pardon
  • Chinese probe lands on Moon to gather lunar samples
  • Drunk drivers on traffic officials’ radar this festive season
  • UN pleads with Ethiopia for refugee access as food runs out
  • Zinedine Zidane's side in Champions League peril

Two Cents Worth…

“To live is the rarest thing in the world. Most people exist, that is all.”– Oscar Wilde

Currency Crackdown...

FXOne would like to thank Bidvest Bank Treasury for their contribution to the crackdown this morning.

 

The ZAR had a good day yesterday as it recouped all of Mondays losses trading from opening level around 15.47to trade down to a low of 15.20 in NY. USD sentiment remains negative and better unemployment numbers out of Germany and weaker US ISM manufacturing PMI saw the EUR have a late rally to a high of 1.2076 from opening level at 1.1926.The GBP followed suit and traded from 1.3313 low to a high of 1.3440.

The late move in the majors effected the ZAR crosses and we saw EURZAR trade back to opening levels around 18.45 from earlier level of 18.25.

The move in the EUR will become a talking point at the upcoming European Central bank meeting next week, as well as plans to supplement the current monetary easing strategy. In the US further stimulus talks have resumed as COVID causes concerns for growth globally.

Encouraging Chinese’s data, coupled with renewed optimism on vaccine hope has again spawned interest in riskier assets.

Pick of the data release today will be USD November ADP Nonfarm Employment change figures. The market does monitor the US Labour market closely, and although a softer figure may put a slight damper on risk, the driver today will more likely be any positive news around vaccine approvals.

Forecasted Range for the day:

USD/ZAR: 15.20 to 15.45

 

On the radar…

  • All – Corona 2nd wave/ vaccine updates
  • UK – BoE FPC Meeting Minutes
  • EU – PPI
  • EU – Unemployment Rate
  • US – ADP Employment Change
  • EU – ECB Member Lane Speaks
  • US – FED Chair Powel Testimony
  • US – Various Fed Members Speak


Did you know?

There's a Starbucks cup in every shot in the movie Fight Club.

 

Have a great day,

Nyiko

 

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