The rand opened around 0.5% stronger at R18.09 against the dollar this morning on the back of the GNU news, and it has a softer dollar while it is steady against the euro and pound. After the local market and European markets open, we will have to wait and see if there is any further strength in the rand.
The DXY index has eased back to 105.60 this morning as rate-cut bets increase. The Yen however remains on the back foot at 161.01 with still no sign of any intervention from the Bank of Japan.
Today's US manufacturing PMI number will be closely watched by markets while the big data releases this week will be the Fed minutes release on Wednesday and Friday's nonfarm payrolls and unemployment numbers. We also have Jerome Powell talking tomorrow and the US market will be closed on Thursday. The UK is also having their election on Thursday, a potential market-moving event. All these events can be market-moving.
Gold has edged a little lower to $2,320 despite the softer dollar and increased rate-cut hopes, while Platinum and Palladium are trading reasonably flat. Brent crude has opened at around 0.5% higher, but gains are likely to be limited as Chinese economic data once again disappointed with manufacturing PMI shrinking for the second month.
