FOMC minutes put the brakes on the rand

Source: JSE.

The rand, which had traded on the front foot for most of yesterday as it briefly broke below R16.80 at one point, softened to close at R16.88. The rand has slipped further this morning in line with softer EM currencies and currently sits at R16.96.

The DXY index is flat at 105.30 this morning, with the dollar flat against the euro at 1.0608 and firmer against the pound at 1.2040. Friday's US unemployment and payroll data will be closely watched, but the really important number is next week's US CPI. Asian equity markets are in the green this morning following a positive close on Wall Street last night.

Brent crude closed nearly 5.5% weaker at $77.84 yesterday and has now lost 9.0% in three days.

Global recession fears and the spike in China's Covid cases keep the price under pressure. Brent is a touch firmer at $78.80 this morning, while WTI is at 73.40.

Gold and Palladium made good gains yesterday, but Platinum closed slightly softer. Prices are fairly flat this morning at $1,852 for Gold, at $1,075 for Platinum, and at $1,795.