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Daily Dose

12 May 2021

Good morning,

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On the wires

  • India's Covid deaths cross quarter million mark, no sign of peak
  • The Israel Defense Forces released video of its Iron Dome system shooting down rockets.
  • Boris Johnson unveils UK's recovery plan for pandemic in 'Queens Speech'
  • Hawks make second arrest in R1.1m Barberton mine fraud case, alleged mastermind on the run
  • Numsa lodges ConCourt bid to force Parliament to save bleeding SOEs
  • Man City crowned Premier League champions after Man Utd loss

 

Two Cents Worth…

Currency Crackdown

FXOne would like to thank Bidvest Treasury for their contribution to the crackdown this morning

It was a range bound day for the ZAR yesterday as we opened around 14.02 and tested lower first to trade a low of 13.9450 before trading higher again to 14.0760 before closing around 13.9960. The market should get more direction later today as the US release inflation data.

The EURUSD traded between a low of 1.2121 and a high of 1.2180 closing in the middle of the range at 1.2146 while GBPUSD was confined to a range between 1.4102 and 1.4165. USDJPY opened around 108.78 and drifted lower testing support at 108.50 before closing around 108.67. The ZAR crosses held steady trading either side of the opening levels with GBPZAR trading between 19.8721 and 19.7107 while EURZAR range was 17.0870 and 16.9640.

Yesterday’s local manufacturing data release showed a first rise in the figures (4.6%-March) on a year-on-year basis since December 2020.Main reasons for the sudden rise range from spares shortage due to Covid production cutbacks, as well pre-Eskom 15% electricity hike production rush. Sentiment is tilted slightly in ZAR favour, as traders could foresee a better-than-expected 1ST Quarter GDP.

UK 1st quarter GDP numbers due out today along with industrial and manufacturing production figures. With the UK opening up its economy at a faster pace than most of its peers (EUR and US), these numbers are expected reflect the positive effects of how well the UK has managed the Covid pandemic.

 

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Have a great day,

Nyiko

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