What are we waking up to
Fed keeps rate unchanged but still sees two cuts this year
The Fed FOMC kept interest rates unchanged as expected yesterday as it continues its current wait-and-see stance. The committee still sees two rate cuts later this year but has trimmed one cut for both 2026 and 2027, with the bank raising its inflation outlook and lowering its growth forecast. US bond yields are firmer while the Dollar is stronger across the board, with markets on edge as the possibility of US military intervention in the Iran-Israel conflict grows. The Euro is trading at 1.1465 this morning and the Pound at 1.3405 ahead of the Bank of England's MPC interest rate decision later today. The BOE is expected to pause its rate-cutting cycle at today's meeting.
Rand above R18.00 on the back of the firmer Dollar and heightened geopolitical tensions
The risk-sensitive Rand has opened weaker at R18.05 this morning after closing at 17.98 last night. The stronger Dollar and uncertainty over any US military action against Iran is keeping the local currency on the back foot for now.
Gold softer as Fed keeps rates unchanged
Gold is trading softer at $3,373 as US interest rates remain unchanged and the Fed raises its inflation outlook. Platinum is trading firmer at a 5-year high of $1,337, with a substantial supply deficit driving demand. Brent crude is largely unchanged at $76.42, with traders watching developments in the Iran-Israel conflict.
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