The rand was firmer on Tuesday morning while the JSE strengthened along with global markets, as investors awaited catalysts for direction.
TreasuryOne currency strategist Andre Cilliers said US president-elect Donald Trump’s tariff threat lacked substance. Trump has threatened to impose “100% tariffs” on imports from Brics countries, effectively blocking them from US trading, if they proceeded with plans to introduce their own currency and move away from the dollar.
“While Trump’s rhetoric on imposing 100% tariffs on Brics+ countries created initial uncertainty, its practical implications are limited,” said Cilliers. “A Brics+ currency remains theoretical, with significant barriers to adoption and liquidity generation in global markets.
“The rand remains in rangebound trading, with no major catalysts to drive a breakout,” said Cilliers.
At 10.36am, the rand had weakened 0.47% to R18.1553/$ and 0.11% to R23.0253/£, while it had strengthened 0.44% to R19.0419/€. The euro was 0.71% firmer at $1.0499.
“Today’s local third quarter GDP data and upcoming US non-farm payrolls will shape near-term rand direction,” said Cilliers.
This week, investors will closely monitor a series of key US labour market reports, starting with the October job openings data on Tuesday. However, the highlight of the week will be Friday’s release of the November non-farm payrolls report, which will provide valuable insights into the labour market’s strength.
That comes before the Federal Reserve's policy meeting on December 17-18. Market expectations are currently leaning towards a potential interest rate cut, with Fed funds futures indicating a nearly 75% probability of a rate reduction, according to the CME’s FedWatch Tool.
At 10.45am, the JSE all share had gained 0.88% to 86,485.78 points and the top 40 was up 0.93%. Precious metals were up 3.05%, resources 2.42%, retailers 1.59%, industrial metals 1.07%, industrials 0.91%, food producers 0.47% and SA listed property 0.16%. Banks had lost 0.1%.
At the same time in Europe, the FTSE 100 had added 0.67%, France’s CAC 40 1.1% and Germany’s DAX 0.48%.
Earlier in Asia, the Shanghai Composite gained 0.44%, Hong Kong’s Hang Seng 0.74% and Japan’s Nikkei 1.91%.
In the commodities markets, gold gained 0.29% to $2,646.22/oz and platinum 1.15% to $956.32/oz. Brent crude was 0.79% firmer at $72.46 a barrel.
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