Compiled by Dhivana Rajgopaul
JOHANNESBURG - The rand rose as concerns ahead of the Jackson Hole symposium Fed into a softening dollar narrative according to NKC Research.
Apart from Thursday’s address by Chair Powell, which may include insight on a possible shift in the policy target, US political risk and fiscal cliff concerns combined with simmering tensions between Washington and Beijing to keep the dollar on the backfoot.
On domestic soil, July consumer price data is due for release on Wednesday, with our expectation that inflation rose modestly after hitting a record-low at the height of the pandemic-induced lockdown. In turn, producer price growth will be released on Thursday.
At the close of local trade, the rand quoted 1.03 percent stronger at R16.94/$, after trading in range of R16.90/$ - R17.17/$. The rand traded steady overnight, remaining below a key level. Expected range today R16.80/$ - R17.10/$.
South African bourse
The JSE All Share (+1.21 percent) ended higher yesterday led mainly by gains in large financial (+2.29 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.50 percent) traded on a firmer footing.
Brent crude oil
The Brent oil price traded higher yesterday as the US shut more than half of its oil production in the Gulf of Mexico due to the twin threat from Hurricane Marco and Tropical Storm Laura. At the close of local trade, benchmark Brent crude futures quoted 0.70 percent higher at $44.73pb. Crude prices extend gains during Asian trade this morning.
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