This week was a very exciting one, with American FOMC speeches on Friday being the highlight. Locally we also received some Inflation data on Wednesday, which provided some clues on the rate prospects of South Africa in the coming months.
– Japanese Trade Data
- EU Inflation Data
- Drone attack on a Saudi oilfield:
- “Europe has 70% Chance of falling into a recession,…”
- “Iran: US sanctions cost market 2.7 Million barrels of oil per day”
- South African Inflation Data
- Eu Consumer Confidence
- Japan Inflation Data:
- Fed Powell Speech
- The USD lost some traction against the Euro and the Pound this week, as well as the JPY and most BRICS Currencies. Only the Russian Ruble came out on top with a netto gain of 0,03% for the week against the Dollar.
- The Rama-Rand also had a good week, gaining against all the Majors. The Rand is still the worst performing currency on a monthly basis, having lost 9,78% against the USD at day of writing. The Rand also way outperformed all of the other BRICS currencies against the USD.
- The Rational Rand had an interesting reaction to the lower than expected inflation data on Wednesday, gaining against all Majors. This may be because lower inflation may open the door to more dovish policy implementation later this year. There are however schools of thought that state that since ESKOM can not sustain power supply in the case of economic growth, that the SARB may hold on before lowering rates later this year, until the SOE’s financial problems have been dealt with; possibly in the form of an IMF bailout or support form China.
- JPY performed very well against the USD this week, as it’s Store Of Value status served it well, as global economic prospects look dimmer by the data point.
- The storage of value status of metals, as with JPY served them well this week with Silver leading the pack with a netto gain of 1,23%.
- Gold reached new highs after the Powell Speech on Friday, with Copper, Palladium and Oils down as global demand prospects look bleaker as recession and slowdown fears become more prominent. Palladium is closely aligned with the demand for automobiles, as it is used in car catalysts, and copper is seen by many as the borrowmeter for the global economy.
- Oil price bumped up on Monday as future supply fears resurfaced in the middle east after a drone attack was recorded in Saudi Arabia.
- The American Indices did not like the words that came out of Powell’s mouth on Friday, and closed more that 25 down OTD.
- The FTSE_100 reacted this week as a hard brexit becomes more of a reality every day, with Boris Johnson not budging and more that willing to leave without a deal.
- German DAX stocks where up after the government announced their planning of stimulus plans, possibly in the form of QE.
That’s it for this week folks. See you tomorrow ❤