By the close of trade on Tuesday, the South African rand weakened against the US dollar.

  • The risk on euphoria over a possible coronavirus vaccine faded, with investors now cautious about the details regarding its preparation and distribution.
  • On the data front, manufacturing production came in better-than-expected on an annual basis in September.
  • In the US, small business owners grew more uncertain in October about the path of the economy, amid a record surge in coronavirus cases right before the Presidential election.
  • Data showed that hiring by private employers came in less-than-expected for September.
  • The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 6.95%. Further, the yield on 2023 bond advanced to 4.01%, while that for the longer-dated 2030 issue climbed to 8.84%.

In early trade on Wednesday, the US dollar is trading lower against the South African rand at R15.5620, while the euro is trading lower at R18.4164.  The British pound has declined against the South African rand to trade at R20.6263.

By the close of trade on Tuesday, the euro advanced against most of the major currencies.

  • German investor sentiment index dropped more-than-expected in November, as a second wave of coronavirus infections and a partial lockdown to contain the disease increased uncertainty over the outlook for Europe’s largest economy. A separate gauge of current conditions deteriorated during the same period.
  • Japanese Prime Minister Yoshihide Suga plans to hold phone talks with U.S. President-elect Joe Biden as early as Thursday, government sources said. Suga is expected to congratulate Biden on his victory over incumbent President Donald Trump in last week’s election and stress the importance of the Japan-U.S. security alliance, according to the sources. Biden has already held phone talks with a number of world leaders including those of Canada, Britain, Germany, France and Ireland, according to his team. Suga has said he is considering the best timing for a call, which the sources said could take place on Thursday
  • Brexit news, UK Finance Minister, Rishi Sunak, stated that significant progress have been made in a post-Brexit trade deal talks.
  • A lot has happened in New Zealand since the last meeting of their Reserve Bank. A lot more has happened outside the island nation that has implications for the country’s monetary policy. Thus, there are many analysts that are expecting some kind of action from the last meeting of the RBNZ of the year. There is over a three-month hiatus until the next time the committee is called.

In early trade on Wednesday, the euro advanced against the US dollar to trade at $1.1832, while it has gained against the British pound to trade at GBP0.8946.