LOCKDOWN LEVEL Ver 3.2 [DAY 29]
TOTAL DAYS 137 – 07 HOURS 15 MINUTES
On Monday, the South African rand weakened against the US dollar. Although it was a public holiday in South Africa, the rand received no respite on the international stage. This is a short week but be sure to buckle up its going to be a rough ride!
- On Monday, In Lebanon the Prime Minister declared parliament dissolved amid rolling protest of corruption and maladministration.
- On Monday, President Trump was whisked away from the White House podium as drama unfolded outside the White House. Trump returned to the briefing room a short while later stating “there was a shooting outside the White House…it seems that the person was shot by Secret Service.” It is not certain if the first family were taken to the impenetrable bunker below the White House.
- Microsoft founder Bill Gates, whose foundation has spent US$350 million on combating the Covid-19 pandemic, told an American TV audience on Sunday that the US government’s mishandling of the pandemic, in particular, testing was “mind-blowing”. “You’re paying billions of dollars … to get the most worthless test results of any country in the world,” Gates said on CNN. “No other country has this testing insanity.”
- In the US, nonfarm payrolls increased more than expected in July and unemployment fell more than expected during the same period.
- Wholesale inventories fell less than initially estimated in June, reflecting a rebound in goods imports after the COVID-19 pandemic disrupted trade flows.
- On the global front, Beijing announced unspecified sanctions against 11 US politicians and heads of organisations promoting democratic causes.
- Meanwhile, the US President, Donald Trump, issued an executive order to ban US companies from doing business with TikTok-owner ByteDance, and Tencent, which owns WeChat and a big chunk of Epic Games.
- Gold is trading at $2,039.60, up $11.60 (+0.57%) on Monday.
- The yield on benchmark government bonds fell on Friday. The yield on 2026 bond fell to 7.40%. Further, the yield on 2023 bond declined to 4.50% while that for the longer-dated 2030 issue fell to 9.21%.
In early trade on Tuesday, the US dollar is trading 0.2% lower against the South African rand at R17.6563, while the euro is trading 0.1% lower at R20.7362. The British pound has declined 0.1% against the South African rand to trade at R23.1045.
By the close of trade on Monday, the euro declined against most of the major currencies.
- Markets will place an extra weight on employment readings and GDP growth figures out of the UK on Tuesday (08:30 GMT) and Wednesday (06:00 GMT) respectively after the Bank of England showed concerns of a rising unemployment rate at its previous week’s policy meeting but reiterated that the economy has a more rapid recovery than it initially projected. With the pound having erased some of its gains on the back of a stronger dollar on Friday, the data should significantly surprise to the upside to help the pair retest its recent peaks. Yet, the reaction is expected to be short-lived.
- The eurozone consumer confidence deteriorated in July, despite expectations of an improvement even though most European governments relaxed restrictions on business and travel related to the COVID-19 pandemic.
- German industrial production sharply increased in June, recovering for the second consecutive month as restrictions to contain the spread of the coronavirus pandemic eased.
In early trade on Tuesday, the euro has advanced 0.1% against the US dollar to trade at $1.1744, while it has marginally weakened against the British pound to trade at GBP0.8975.
|United States Dollar||0.05669||ZAR/USD|
|Hong Kong Dollar||0.43938||ZAR/HKD|
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