Daily Forex Market Wrap 2019-08-14

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Daily Forex Market Wrap 2019-08-14

Published Date: 2019-08-15 | Source: TreasuryONE | Author: TreasuryONE Dealing

The risk-off sentiment has crept back into markets and the ZAR finds itself above 15.40 at the time of writing. Gold, which took a knock yesterday after positive headlines on the US-China trade wars, has since bounced due to its safe-haven status and this has helped the commodity gain close to $20 again today.

The EUR is under pressure today after the Eurozone economy only showed growth of 0.2% in the second quarter, a slowdown from 0.4% during the first three months of the year while the German economy contracted during the Q2.

In the US, the 30yr yield curve has inverted with the 10yr for the first time since 2007 while the UK the 10yr yield has also fallen below the 2yr. Both these occurrences signal worrying signs for investors and adds to the risk-averse sentiment at the moment. Brent Crude is down 2.8% for the day as it trades at $59 following the concerns about the global economy.

The Nasdaq opens the day 2,1% down while the S&P and Dow Jones are both closing in on the negative 2% level for the day.

Locally our All-share index has lost 2.05% as the trading session draws to a close as the sell-off in local assets continue.

Currencies

USDZAR 15.4154
EURUSD 1.1149
EURZAR 17.1780
GBPUSD 1.2068
GBPZAR 18.5940
AUDZAR 10.4017
CADZAR 11.5786
CNYZAR 2.1939
ZARJPY 6.8559
CHFZAR 15.8467

Commodities

Gold 1 516.96
Plat 848.22
Plad 1 433.43
Rhod 3 800.00
Irid 1 470.00
Ruth 248.00
Copp 5 731.65
Brent 59.37
Gold ZAR 23 366.80
Plat ZAR 13 065.78

Our daily forex view brought to you by the TreasuryONE Dealing Team