What are we waking up to
Trump-Xi talks seen as positive, US data mixed
Talks between Donald Trump and his Chinese counterpart Xi Jinping appeared to be positive, with an agreement being reached for officials to meet soon to resolve the tariff impasse. The news did little to support the Dollar which had fallen to close to 1.1500 against the Euro after the ECB cut rates by 25bps. The Pound also firmed quite sharply, trading above the 1.3600 level at one point. US data was mixed once again yesterday, with jobless claims above estimates but with the US trade deficit lower than expected. Analysts are expecting the non-farm payrolls data to confirm the slowing in the labor market which would put further pressure on the Fed to cut rates.
The Rand continues to gain as the Dollar struggles and precious metal prices soar
The Rand hit its best levels since December last year, trading just below the R17.70 level as the Dollar weakened. The local currency is holding firm at R17.75 this morning as the weak Dollar and strong Gold and Platinum prices provide support. The relatively high real yield in South African bonds is also seeing some decent investment inflows.
Gold up 0.5% ahead of payrolls number, Platinum and Palladium rally further
Gold is trading 0.5% higher at $3,370 ahead of today's US payrolls and unemployment data. Analysts are expecting a weak number, raising hopes of an earlier Fed rate cut, which is positive for Gold. Platinum is up over 1.0% this morning, trading at a 2-year high of $1,158 as demand outstrips supply once again. The positive Trump-Xi talks saw Brent firm slightly yesterday, with the price holding above $65.00
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