Daily Dose

19 March 2018

Good morning,  

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On The Wires,

US, South Korea and Japan discuss denuclearisation, summit talks…Facebook's Zuckerberg comes under fire from UK, US lawmakers…British inner-city teacher named world's best, wins $1m prize…Turkey's forces capture Syrian Kurdish town of Afrin…Putin wins fourth term with 73.9 percent of vote…Sixteen injured in five-car collision in Cape Town…Theft and vandalism threatens Cape Town’s water security…Maimane stands uncontested for re-election as DA leader…Striking Gauteng pathology workers return to duties…Guptas ripped off poor in planned R1bn a year scam…Bulls prop gets 3-game ban for horror tackle…McIlroy ends 18-month PGA win drought with Palmer title…Del Potro outlasts Federer to win Indian Wells final…Salah can pass Messi and be best in world, insists Klopp…Ireland overpower England to claim Grand Slam.

Two Cents worth

“I wish Monday was as fast as Usain Bolt”- unknown

Currency Crackdown

Trading range on Friday was 11.81- 12.00. The rand is edging up slowly as we enter a short week with lots to happen. Wednesday we have Human Rights Day, while on Friday we should have the Moody’s rating review. Before that we have SA current account data, as well as local inflation figures. From the US we will have the interest rate decision at the Federal Reserve FOMC meeting. The probability of an interest rate hike, of +0.25%, at the FOMC meeting is 100% and is priced into the $ for now. The potential for either 2 or 3 further rate increases for the year, is the issue that will move the $, as well as all currencies as a result.

The $ is looking stronger and as a result we have seen small risk off sentiment. As a result, we have also seen Gold lose some ground while Brent is slightly higher. US equity markets were slightly better on Friday while Asian markets are mixed. US Treasury bond yields have kicked again but have a way to go before they become a concern to the equity markets.

There are almost no economic releases today but the calendar is going to be relatively full, in a short trading week. Liquidity in the rand, which has been reported as light in the Far East already this morning, might be an issue for the balance of the week. The G20 conference begins to today, where a global trade war will be discussed so keep both eyes on the ball.

Did You Know?

When Usain Bolt broke the 100m world record in 2008, he credited McDonald’s chicken nuggets as his chosen race fuel.


Have a good week,



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