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Daily Dose

15 August 2018

G morning.


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On The Wires,

Turkey is investigating hundreds of social media accounts bad-mouthing the lira…Facebook is bringing Spanish soccer to India's billion-strong consumer market — for free…Asian shares stumble as markets shrug off Wall Street relief bump…Trump support dips among farmers as trade war wallops agriculture…Amazon now owns $1 billion worth of other companies…ANC's new MPs sworn in…Municipalities owed R139bn for services…Gigaba, Howa, former ministers could be called for Gupta citizenship inquiry…Teachers, pupils walk out over ‘racial’ school speech…DA slams 'weak and pliable' acting NDPP Ramaite…SuperSport commentator out of ICU, remains under sedation…Man who took Mohamed Salah ‘phone video’ denies sending it to police…Cheetahs to sport new hooped jersey…Gary Stead named new Black Caps coach…Ramos hits back in scathing attack on Jurgen Klopp…Batsmen let Proteas down in disappointing T20 defeat.

Two Cents Worth

"The three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense."                  – Thomas A. Edison

Currency Crackdown

We saw yet another day volatile trading session as the Rand swung back and forth between a low of 14.02 and a high of 14.32. Rising tensions between Turkey and the US are keeping traders on the edge of their seats as local factors continue to take a back seat in the currency discussion. The first positive Mining Production figures this year were met with a muted response despite drastically beating initial estimates. We should expect more of the same ahead of local Retail Sales figures later this afternoon.

This morning news broke out that Turkey had announced that they will be increasing tariffs on certain US imported goods, escalating tensions with the US and stoking fears that Turkey’s economic instability could spread. Turkey’s President Erdogan stated that Turkey would boycott US electronic goods, urging his people to boycott iPhones and purchase local or Korean phones instead. Tariffs have also been imposed on wheat, corn, rice and barley.

The dollar is likely to continue gaining support on the back of the risk off environment and as the euro continues to get dragged by the Turkey turmoil. While there’s a whole host of economic data due out of the US today, which has the potential move the currency even higher. Elsewhere we also have some big data coming out of the UK which should have a big impact on the pound.

In other markets Asian stocks are trading lower despite a strong close in the US. A stronger dollar continues to weigh on gold price, while oil is trading marginally lower.

With the above-mentioned risks, markets will move excessively fast creating a very risky environment. Pick levels, stick to them and trade wisely.

 

Economic data due today

 

GB: Inflation rate MoM & YoY – 10:30am

GB: Core Inflation Rate YoY – 10:30am

GB: PPI Input & Output MoM & YoY – 10:30am

GB: Retail Price Index MoM & YoY – 10:30am

SA: Retails Sales MoM & YoY – 01:00pm

US: MBA Mortgage Applications – 01:00pm

US: Retails Sales MoM YoY – 02:30pm

US: Nonfarm Productivity QoQ – 02:30pm

US: Industrial Production MoM & YoY – 03:15pm

US: Manufacturing Production YoY – 03:15pm

US: Business Inventories YoY – 04:00pm

 

Did You Know?

Cheetahs only need to drink water every 3-4 days.

 

Have a great day

Keaton

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