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Daily Dose

3 April 2020

Good morning,


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On The Wires,

  • One Million Coronavirus Cases Worldwide in Just 18 Weeks
  • Trump says scarves 'better' than masks
  • UK officials release guidance on who to save first
  • S.A lockdown arrests rise to 2 289
  • New homes for hundreds of Cape Town refugees
  • US Open in limbo as golf bodies struggle with coronavirus-hit schedule - report

Two Cents Worth..

Currency Crackdown

*We would like to thank Jan Sluis-Cremer from RMB Global Markets and Institutional FX Sales for the use of his currency comment.

Good morning,

A bleak day for the rand yesterday as the local unit traded over 2.0% weaker and touched a new all-time low of 18.65 in the afternoon session. It seems the rand played catch up yesterday after fellow Emerging market peers got sold off on Wednesday. Analysts are forecasting a steep economic contraction and a much larger budget deficit than originally forecast due to the global coronavirus pandemic.

The coronavirus continues to grab global headlines. The virus has now infected more than 1 million people across the world, with more than 53,000 deaths and 211,000 having recovered in what has become the biggest global public health crisis of our time. Domestically cases have risen to 1,462 yesterday from the previous day’s 1,380.

The rand gets going at 18.56 this morning against the green back. After yesterdays big move we can now expect buyers on a dip down to the 18.30 levels. 18.80 still remains the overall target.

Against the crosses the rand also got hit hard yesterday. Eur/Zar kicks off at 20.15 while Gbp/Zar is at 23.00.

The data calendar gets underway at 09:15 local time when our March PMI number gets published. 10:00 sees the Euro zones PMI numbers for March. We remain in Europe when at 11:00 they release their February retail sales numbers. 14:30 attention turns to the US for their March non-farm payroll numbers. After yesterday’s poor weekly jobless numbers expect analysts are starting to see those numbers filter into the overall non-farm payrolls. Analysts are forecasting a -100,000 for March compared to Februaries 273,000 jobs having been created. The overall unemployment rate is expected to rise to 3.8% from 3.5%. The day is finished off at 15:45 with US PMI numbers for March.

PLEASE KEEP IN MIND THAT THE INCREASED VOLATILITY AND LACK OF LIQUIDITY HAS MADE IT INCREASINGLY DIFFCULT FOR THE BANKS TO PROVIDE PRICING. QUOTES MAY BE WIDER THAN EXPECTED WHEN BOOKING DEALS. FXOne WILL BE WORKING REMOTELY SO PLEASE EXERCISE PATIENCE AND UNDERSTANDING THROUGH THESE ABNORMAL CONDITIONS.

On the radar...

·         ZA – PMI

·         EU – Markit Services PMI

·         EU – Retail Sales

·         US – Non Farm Payrolls

·         US – Unemployment Rate

·         US –  Markit Services PMI

Did you know?

Female dragonflies will fake their own deaths to avoid mating with unwanted males.

 

Have a warm and safe weekend, 

FXOne Team.

 

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