By the close of trade on Wednesday, the South African rand had strengthened against the US dollar.

  • Retail sales in South Africa rose less-than-expected on an annual basis in September.
  • In the US, consumer price index (CPI) rose more-than-expected on a monthly basis in October, on account of increase in prices for energy products, healthcare, food and a range of other goods.
  • Mortgage applications rose for the week ended 8 November due to rise in mortgage rates.
  • The Fed Chairman, Jerome Powell, stated that the current stance of monetary policy is likely to remain appropriate as long as incoming information about the economy remains broadly consistent with the central banks’ outlook of moderate economic growth, a strong labour market, and inflation near its objective.
  • The yield on benchmark government bonds fell yesterday. The yield on 2020 bond declined to 6.89% while that for the longer-dated 2026 issue fell to 8.45%.

In early trade on Thursday morning, the US dollar is trading 0.1% higher against the South African rand at R14.9294, while the euro is trading 0.1% higher at R16.4280.   The British pound has marginally gained against the South African rand to trade at R19.1669.

On Wednesday, the euro declined against most of the major currencies.

  • In the eurozone, industrial production rose for a second straight month in September as output drops in Germany and Italy were offset by increases in France and the Netherlands.
  • German CPI remained steady on a monthly basis in October. In the UK, inflation fell to its lowest level in nearly three years in October.At 06:00 SAST, the euro marginally slipped against the US dollar to trade at $1.1004, while it has gained 0.1% against the British pound to trade at GBP0.8570.

Technical: