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Daily Dose

11 May 2021

 Good Morning,

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On The Wires...

  • Covid-19 patients in India are developing 'black fungus' infections which can lead to blindness
  • A Chinese zoo kept quiet for days after 3 leopards escaped. One is still on the loose.
  • Hamas fires rockets at Israel in retaliation to Jerusalem violence
  • Cop dog 'Mufasa' helps nab 3 suspects in possession of suspected stolen vehicle
  • 7 killed, 30 injured in fiery gas tanker crash in KwaZulu-Natal
  • Rassie hits back after claim Springboks aren't worthy of being world's bes

Two Cents Worth…

 

Currency Crackdown...

 

FXOne would like to thank Keaton Den Heyer for his contribution to the crackdown this morning

The Rand continued its great run against the USD as we saw the currency finally break through the 14 level yesterday before settling back above that level as its momentum ran out of steam. With the Rand's movement being dominated by international factors we bound to see the currency test the 14.00 level again with that in hand we also need to monitor local manufacturing data that is due today around midday.

The USD remains under pressure from Friday’s terrible employment data showing. U.S Inflation continues to attract eyes with expectations reaching their highest levels since 2006. Investors are also looking to a string of U.S. government bond auctions this week as possible catalysts for another selloff. Today and rest of the week we have a range of Fed speakers with a speech from the Federal Reserve Board of Governors' member Lael Brainard being highlighted.

Elsewhere oil weakened as markets and traders await the reopening of the largest U.S. oil products pipeline which was stunned by a cyber-attack. The expectation is that it would be back online by the weekend.

  • Lastly we also need to keep a close eye on the current Covid-19 development in India where we are seeing a fast spreading strain of Covid-19 variant which is seen as one the of the world’s most fearsome outbreaks.

On the radar...

  • All – Global vaccine updates
  • EU – ZEW Economic Sentiment Index
  • UK – BoE Gov Bailey Speech
  • All – International equity and bond market direction
  • SA – Manufacturing Production MoM & YoY
  • US – Fed Members Speeches

 

 

Did you know?

Although you can sink waist-deep into quicksand, it is impossible for you to be submerged completely

Have a great day,

Keaton

 

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