Daily Dose

4 December 2020

Good morning,

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On The Wires...

  • President declares Nelson Mandela Bay a COVID-19 hotspot, introduces more restrictions
  • In Canada demand for puppies soars during pandemic, so do scams
  • Former US presidents ready to publicly receive COVID-19 vaccine
  • US blocks imports of Xinjiang 'slave labour' cotton
  • Maduro allies set for poll victory with Guaido on the ropes
  • 'So angry': Chinese football clubs ordered to change names

Two Cents Worth…

Currency Crackdown...

The ZAR continues to perform well opening yesterday around 15.27 trading to a high at 15.36 and then turned lower to trade a low of 15.1373 in NY. The USD struggles along as we see EUR edge higher along with most currencies.

EUR trades comfortably around 1.2150 and GBP at 1.3458. AUD holding above 0.74 its highest level in 2 years. The news flow remains the same with the focus on more US stimulus and COVID. China is performing well, and commodity-based currencies should benefit in the short term.

Eurozone data highlights will point to October’s German Factory Orders. The better than expected November Manufacturing PMI’s, will have markets looking for another rise in demand, which will support the bullish view currently in play for EUR.

Data headlines for today will be focussed on US Non-Farm Payroll data and Unemployment Rate. There has been a common view in markets that the US labour market recovery has stalled slightly. Recent labour data ADP report and JOLT Job openings were not supportive of a sharp growing employment base. This does not rule out a surprise labour data release, which could be catalyst that swings the stretched short USD short positions in market.

Forecasted Range for the day:

USD/ZAR: 15.08 to 15.30

On the radar...

  • All – Corona 2nd wave/ vaccine updates
  • UK – Construction PMI
  • US – Average Hourly Earnings
  • US – Nonfarm Payrolls
  • US – Unemployment Rate
  • US – Factory Orders
  • US – Chicago Fed President Evans Speaks
  • US – Fed Member Bowman Speaks

Did you know?

A duck’s quack doesn’t echo, and nobody can figure out why.


Have an awesome weekend



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