By the close of trade on Wednesday, the South African rand strengthened against the US dollar.
- Meanwhile, in South Africa, the Standard Bank purchasing managers’ index (PMI) fell in November.
- In the US, ISM non-manufacturing PMI contracted more-than-expected in November, reviving fears about the economy’s health.
- Mortgage application decreased for the week ended 29 November, due to a drop in refinancing activities.
- Further, ADP employment unexpectedly declined in November.
- The US Federal Reserve (Fed) Vice Chairman, Randal Quarles, stated that the central bank is reviewing its supervisory practices in the wake of a September liquidity crunch in the repo market and added that he did not believe the Fed’s regulations were a major contributor for market issues.
- The yield on benchmark government bonds ended mixed yesterday. The yield on 2020 bond advanced to 6.85% while that for the longer-dated 2026 issue fell to 8.42%.
In early trade on Wednesday, the US dollar is trading marginally lower against the South African rand at R14.5905, while the euro is trading marginally higher at R16.1736. The British pound has gained 0.1% against the South African rand to trade at R19.1370.
By the close of trade on Wednesday, the euro had declined against most of the major currencies.
- Meanwhile, Eurozone services PMI rose more-than-expected in November.
- Germany’s services sector ticked up slightly in November, with persistent labour shortages pushing up wages as companies continued to add staff despite a drop in new orders.
In early trade on Thursday, the euro advanced 0.1% against the US dollar to trade at $1.1084, while it has marginally weakened against the British pound to trade at GBP0.8452.