The signing of the US $1.9 trillion relief package into law by President Biden and declining US bond yields saw the Dollar trade on the back foot and risk currencies firm last night. The Rand closed 1.7% stronger at 14.8229, having briefly tested close to the 14.8000 level, but the local currency has slipped a bit this morning to be trading at 14.9050 as bond yields and the Dollar tick higher.
Gold has slipped off yesterday’s stronger levels, trading at $1 719 while Platinum is a touch firmer at $1 209, and Palladium softer at $2 353. Oil is trading marginally lower at $65.82 for WTI and $69.50 for Brent.
The DXY index is quoted at 91.548 this morning, up from last night’s 91.420 closing levels with the Dollar firmer against the Euro and Pound at 1.1964 and 1.3974 respectively. The ECB kept interest rates on hold after yesterday’s meeting but said that they would ramp up their bond purchases in the next quarter. US Treasury yields are a touch higher today with the 10y quoted at 1.555% and the 30y at 2.309%. The US equity market closed strongly last night with the Nasdaq up 2.52%, the S&P up 1.05%, and the Dow up 0.58%. US futures are fairly flat today and Asian-Pacific markets are mixed. The local ALSI closed 0.38% higher at 68,775 last night.
