View this email in your browser

Morning Wrap

14 August 2023

Good Morning

The ZAR lost ground against the Dollar reaching R19/$ in early trading, on the back of a Risk off Asian session.  

Market Movement Today:

  • The ZAR breached R19/$ handle after US producer inflation printed higher than expected, setting off another Dollar rally.
    • US treasury yields spiking higher to reach 4.17% on the combination of renewed Fed hawkishness and also continued Treasury issuances.
  • Last week, both US CPI and PPI were above previous rates BUT markets continue to price a 70% likelihood that the FED will pause.  
    • However, hawkish statements from Fed officials drove investors to consider that interest rates will remain at a restrictive level for a prolonged period of time.
    • The result a rebound Us yields and the  Dollar and the Rand selling off accordingly.
  • Technically, the previous high of R19.1500/$ remains a key level and a break opens up R19.90/$
  • We except the ZAR to weaken in the current environment.
  • Trade :  BUY USDZAR

Markets this morning:

  • USDZAR 19.0000
  • DOLLAR 102.97
  • EURUSD 1.0931
  • SP500 4,460
  • GOLD  1912
  • US10YT 4.17%

Copyright ©
2023 RussellStone Treasury 
All rights reserved.

Our mailing address is:

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.