Vaccine rollout day 36 / J & J VACCINE DAY 24      

By the close of trade on Friday 5th march 2021, the South African rand weakened against the US dollar.

  • In the US, the economy created more jobs than expected in February as falling new COVID-19 infections and additional pandemic relief money from the government boosted hiring at restaurants and other services businesses.
  • The White House on Sunday urged computer network operators to take further steps to gauge whether their systems were targeted amid a hack of Microsoft Corp’s Outlook email program, saying a recent software patch still left serious vulnerabilities. “This is an active threat still developing and we urge network operators to take it very seriously,” a White House official said, adding that top U.S. security officials were working to decide what next steps to take following the breach.
  • Friday’s US market was the proverbial game of two halves, 10-year US Treasury yields making a new year-to-date high immediately following the stronger than expected 379k jump in US non-farm payrolls, and this is turn hurting equities at the open and supporting the USD. Yet equities stages an impressive afternoon come-back, in conjunction with Treasury yield falling back to end the day little changed, the S&P 500 up 3% from intra-day low to high to finish +2.0% and the NASDAQ and even more impressive 4% intra-day swing to end +1.6%. The BBDXY USD index gained 0.35% Friday to be up just under 1% on the week
  • Unemployment rate fell in February.  The trade deficit widened in January as goods imports jumped to a record high amid a sharp rebound in consumer spending.
  • Senate Democrats passed their version of the near-$1.9 trillion American Rescue Plan Act Saturday afternoon, but not before making some major changes from the version of the bill passed by the House of Representatives last week. Some of the most notable changes between the two relief bills include dropping a provision to gradually increase the minimum wage to $15 per hour and reducing the number of people who will qualify for a $1,400 stimulus payment.
  • U.S. Secretary of State Antony Blinken called for a 90-day reduction in violence in Afghanistan and a new United Nations-led peace effort as he warned the United States could withdraw all forces after May 1, according to a letter to Afghan President Ashraf Ghani reported by several news outlets Sunday.
  • The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 7.57%. Further, the yield on 2023 bond advanced to 5.37% while that for the longer-dated 2030 issue rose to 9.29%.

In early trade on Monday, the US dollar is trading higher against the South African rand at R15.3822, while the euro is trading marginally lower at R18.3233.  The British pound has declined against the South African rand to trade at R21.2472.

By the close of trade on Friday, the euro declined against most of the major currencies.

  • A busy week ahead for European economics with the ECB press conference and rate statement. Are changes to economic policy coming to halt steepening yields? In the US, CPI data is released, gauging the effects of inflation. The Bank of Canada will also be making its overnight rate statement, and a strong economic outlook for Canada could mean a change in bond-buying policy.
  • The United Kingdom lost market share in the United States, Germany and China during the COVID-19 pandemic due to global trade chaos, Brexit and poor productivity, according to new research published on Monday. The United Kingdom performed particularly badly due to a long-term stagnation in productivity growth, according to the report by Aston University’s Lloyd’s Banking Group Centre for Business Prosperity. While all countries grappled with the tumult of COVID-19, the United Kingdom lost market share in its biggest export markets – the United States and Germany, the research showed.
  • German factory orders rose more than expected in January as robust foreign demand more than offset domestic weakness in Europe’s largest economy.

In early trade on Monday, the euro has slipped against the US dollar to trade at $1.1926, while it has gained against the British pound to trade at GBP0.8626.