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Daily Dose

23 September 2020

Good morning,


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On The Wires...

  • Hundreds of whales dead in Australia stranding
  • Water Department expects to reduce pollution in Vaal River within next 3 years
  • Putin vaunts Russian coronavirus vaccine at UN
  • Britain to impose new virus curbs as WHO issues grim warning
  • Former SAP exec implicates global software business in corruption probe
  • Man Utd reach League Cup last 16 as coronavirus causes chaos

Two Cents Worth...

 

Currency Crackdown...

 

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

The rand having a better day after Monday’s sell off. After trading back above the 16.90 level at the open, the local unit ran out of momentum as some common sense returned and we saw the rand move down to 16.58 again. Local buyers emerged and we saw the rand close back up at the 16.70 levels.

Overnight the dollar has rallied across the board after Fed officials spoke and concerns around the resurgence of a second wave of the coronavirus. Adding some fuel to the dollars bounce, were comments from the Chicago Fed President, Charles Evans, that interest rates could rise before the inflation target is reached.

Globally the coronavirus is back in the headlines again. News out overnight that the US has now passed the 200,000 mark on deaths, and India’s death toll now topping the 90,000 mark. The British Prime Minister, Boris Johnson, announced a slew of new restrictions that are likely to last six months and urged residents to work from home where possible.

This morning the rand gets underway at 16.85 to the green back again. With tomorrow being a local holiday, expect the rand to remain under pressure on the back of the stronger dollars. 16.65 to 16.95 trades for now and a break above the resistance line opens for a test of 17.10 again.

Against the crosses, Eur/Zar kicks off at 19.70 while Gbp/Zar is at 21.40.

On the data front, the morning gets going at 09:30 local time with German PMI numbers for September. This is followed at 10:00 with the Euro zones September PMI numbers. Then the day is finished off in the US at 15:45 with their PMI data for September. There is no local data out today. 

 

On the radar...

  • All – Corona updates
  • EU – Manufacturing PMI
  • UK – Manufacturing PMI
  • JP – BoJ Monetary Policy Statement
  • US – Various Fed Members Speak
  • US – Fed Chair Powell Testifies

Did you know?

Vulcan Point in the Philippines is an Island within a lake on an island within a lake on an island

                                  (Click here and see for yourself)

 

 

Have a happy Heritage Day,

Nyiko

 

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