Trade war talks the market mover! 2019-10-07

print

Trade war talks the market mover! 2019-10-07

Published Date: 2019-10-08 | Source: TreasuryONE | Author: TreasuryONE Dealing

We have seen emerging markets under pressure after China stated that would only discuss certain topics with the US in the ongoing trade war. They will not accept a broad trade deal from the Trump administration. This caused the Chinese yuan to drop in offshore trading and placed EM under pressure.

USDZAR opened up at R15.04 and weakened to R15.18 and is currently lingering at R15.15. Turkey has been the worst affected as the US has stated that they will not support a military move into Northern Syria.

US equities opened in the red and oil gained almost 2% on the day. The pound remains under pressure as the looming Brexit date of 31 Oct draws closer without a deal on the table. EURUSD is again flirting with the 1.10 level.

Later in the week we see the release of the previous US FOMC minutes and this will give us an idea of whether rate cuts are on the table for later in Oct. With the string of poor data, the market is already pricing a 70% chance of a rate cut. For now the ZAR looks to remain range bound within the R15.00 to R15.25 range.

Currencies

USDZAR 15.1480
EURUSD 1.0994
EURZAR 16.6454
GBPUSD 1.2328
GBPZAR 18.6642
AUDZAR 10.2152
CADZAR 11.3812
CNYZAR 2.1178
ZARJPY 7.0549
CHFZAR 15.2395

Commodities

Gold 1 503.03
Plat 887.45
Plad 1 659.82
Rhod 5 190.00
Irid 1 470.00
Ruth 248.00
Copp 5 625.65
Brent 59.39
Gold ZAR 22 754.54
Plat ZAR 13 435.19

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