EM continues to wobble as FOMC approaches

8 September, 2015

The South African rand hit a landmark low against the dollar yesterday with USDZAR breaching the 14.00 level for the first time ever as the South African Reserve Bank maintains its stance on refusing to intervene and we approach the FOMC meeting next week. Whilst expectations for a rate hike from the Federal Reserve this month have been scaled back, the Chinese story continues to dominate, in particular for those countries such as South Africa that have a large export exposure to China. As Africa’s second largest economy continues to slow, the concoction of all these ingredients makes any upside for the rand hard to see, especially if the China story continues to show a rapidly slowing economy.

Today the US markets return after their Bank Holiday and the economic calendar is a little busier. This morning sees another reading of Q2 Eurozone GDP figures which are expected to confirm the block’s economy slowed from 0.4% growth in Q1 to 0.3% in Q2, but given that we know of the Euozone’s sluggish growth we’re unlikely to see any big moves in the euro unless the figure is worse than expected, which could lead to some weakness.


Source link  
Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...


Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...


Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

  


Share it on:   or