28 Mar 2019
The rand closed at R14.67 to the greenback on Thursday afternoon.
The day's range was between R14.59 to R14.74.
The rand remained steady following the repo rate announcement earlier today.
The SA Reserve Bank's monetary policy committee kept the repo rate unchanged at 6.75% in a unanimous decision.
28 Mar 2019
The SA Reserve Bank has kept interest rates unchanged at 6.75% and prime at 10.25%.
TreasuryONE said in a note that this was not unexpected.
"The SARB is still worried about growth. There has been no reaction on USDZAR, still trading around R14.70."
28 Mar 2019
US GDP came out slightly weaker than expected for Q4 of 2018 at 2.2% vs 2.3% expected, TreasuryONE said in a note.
"This hasn't really been market moving with EUR still under pressure. EURUSD trading at 1.1225 form 1.1260 earlier.
"Emerging market currencies remain under pressure as the Turkey problems still linger. USDZAR up around the R14.70 level."
28 Mar 2019
OVERVIEW: The global bond rally showed signs of easing Thursday, with Treasuries turning lower alongside most sovereign debt in Europe. Stocks rose in the region while US equity futures drifted. The 10-year Treasury yield crept back above 2.37%, rising from a fresh 15-month low hit earlier on Thursday in Asia trading.
Contracts on the S&P 500 pointed to a flat open, while the Stoxx Europe 600 climbed for a third day. Shares slumped in Japan and fell in China and South Korea. The dollar headed for a fifth gain in six sessions, while Britain’s pound weakened after the UK Parliament rejected eight possible options for a new Brexit strategy.
The Turkish lira resumed declines despite an organized effort to stem the currency’s losses days before elections. While most risk assets went on a tear this quarter, investors are greeting the end of the period in a far less jubilant mood. Recent data showing weakness in US housing and consumer sentiment fed into the growth concerns that have helped stoke the global bond rally over the past week. After the Fed last week confirmed its intention to stop raising rates, futures are suggesting at least one quarter-point cut.
“We are worried about the short term because the Fed is as dovish as they can be in the short term,” Chris Harvey, head of equity strategy at Wells Fargo in New York, told Bloomberg TV. “Interest rates are coming down throughout the globe, fears of recession are starting to go higher. We don’t think those fears are founded - but you have to acknowledge that that’s going to weigh on markets in the short term.’
’Elsewhere, oil fell for a second day after an unexpected jump in US crude stockpiles, while gold edged lower.
Stocks
The Stoxx Europe 600 Index increased 0.2% as of 06:48 New York time. Futures on the S&P 500 Index advanced less than 0.05%. The UK’s FTSE 100 Index advanced 0.6% to the highest in a week on the largest gain in a week. Germany’s DAX Index gained 0.4% to the highest in a week. The MSCI Emerging Market Index decreased 0.2% to the lowest in more than two weeks. The MSCI Asia Pacific Index sank 0.5%.
Currencies
The Bloomberg Dollar Spot Index climbed 0.2% to the highest in more than two weeks. The euro advanced less than 0.05% to $1.1248. The British pound declined 0.3% to $1.3149, the weakest in a week on the largest fall in a week. The Japanese yen increased 0.2% to 110.30 per dollar.
Bonds
The yield on 10-year Treasuries climbed one basis point to 2.37%. Germany’s 10-year yield advanced one basis point to -0.08%. Britain’s 10-year yield dipped two basis points to 0.988%. Italy’s 10-year yield gained four basis points to 2.491%.
Commodities
West Texas Intermediate crude decreased 0.7% to $59.01 a barrel. Gold fell 0.2% to $1,306.65 an ounce, the weakest in more than a week. - Bloomberg
28 Mar 2019
The rand has shifted another leg weaker as turmoil in Turkey sees the lira on a rollercoaster and the Central bank shoring up confidence ahead of the weekend elections, says Corporate Treasury Manager at Peregrine Treasury Solutions Bianca Botes.
"At the same time, the dollar index is on a strong course to post gains for the third consecutive day. The SA Reserve Bank Monetary Policy Committee is expected to keep rates on hold today, but is likely to caution against inflationary pressure expected in coming months.
"The markets will also look to local PPI coupled with an extremely busy data day in the EU today, with the focus on consumer and business climate, as well as inflationary expectations. This afternoon will see the US post GDP figures as well as jobless claims, which will drive the direction of the currency today.
"We expect the ZAR to remain under pressure, with severe volatility on the back of the numerous data releases, the lira volatility and mounting anticipation of Moody’s announcement tomorrow.
Botes said the expected intraday range is R14.50 to R14.68 against the greenback.
By 10:18, the rand was trading hands at R14.66/$.
28 Mar 2019
Stocks slide again as bond-yield drop stokes worry
Andreea Papuc and Adam Haigh, Bloomberg
Stocks declined again across much of Asia as the precipitous decline in developed-market sovereign bond yields continued to unnerve investors about the economic outlook.
Yields on 10-year Treasuries hit a fresh 15-month low on Thursday in Asia, and Australian ones recorded the lowest on record, while Japan’s are near levels unseen since 2016.
Japanese shares led declines in the region, sliding about 1.6%. Losses were more modest in South Korea and China, while India and Australia saw gains and Hong Kong snuffed out early declines.
US futures fell after the S&P 500 Index dropped on Wednesday. The yen headed higher as haven demand emerged.
Britain’s pound traded at the weaker end of its recent range after the UK Parliament rejected eight possible options for a new Brexit strategy, leaving the Brexit outlook all the muddier.
Elsewhere, rates on benchmark German Bunds sank further below zero after European Central Bank President Mario Draghi said an accommodative stance is still needed.
Recent data showing weakness in US housing and consumer sentiment fed into the growth concerns that have helped stoke the bond rally over the past week. Federal funds futures are now pricing in more than a quarter point of easing by the end of 2019.
“We are worried about the short term because the Fed is as dovish as they can be in the short term,” Chris Harvey, head of equity strategy at Wells Fargo in New York, told Bloomberg TV. “Interest rates are coming down throughout the globe, fears of recession are starting to go higher. We don’t think those fears are founded - but you have to acknowledge that that’s going to weigh on markets in the short term.’’