LOCKDOWN LEVEL 1

TOTAL DAYS 596 – 07 HOURS 30 MINUTES 

Vaccine rollout day 245
New cases  356
New Deaths  17
Recovery Rate 96,4%
Vaccines Administered 23,402,284

By the close of trade on Thursday 11th November 2021 , the South African rand strengthened against the US dollar. The US were on holiday yesterday [Veterans day], and the market was quiet for most of the afternoon with the rand eventually settling to close at 15.3300.

  • In South Africa, Finance Minister, Enoch Godongwana refused to use the fiscal space delivered by a R120.00bn boost in tax revenue to announce new spending commitments, including meeting demands for a basic income grant. Further, the MTBPS indicated that the special Covid-19 grant of R350 a month would be allowed to expire in March as planned.
  • The domestic manufacturing production index advanced more than expected in September. Meanwhile, the country’s mining production in the year to September fell as logistical constraints stemming from a shoddy rail network prevented products from getting to market.
  • In the US, worker filings for unemployment insurance edged lower last week, continuing their long path toward pre-pandemic levels as the domestic labour market improves. The U.S. Labor Department reports that the cost of consumer goods has increased 6.2% compared a year ago.
  • The U.S. is raising the alarm with European Union allies that Russia may be weighing a potential invasion of Ukraine as tensions flare between Moscow and the bloc over migrants and energy supplies. With Washington closely monitoring a buildup of Russian forces near the Ukrainian border, U.S. officials have briefed EU counterparts on their concerns over a possible military operation, according to multiple people familiar with the matter.
  • Russia’s preliminary balance of payments estimate for the first 10 months of 2021 suggests little change in the current account surplus in October compared to the 3Q21 monthly average. That, however, did not prevent the ruble from showing a noticeable 2.2% appreciation against the US dollar and 3.8% against the euro. Based on the monthly central bank estimates (subject to subsequent revisions), the current account surplus totalled US$12.3b in October (US$94.4b year-to-date), which is close to the US$13.6b monthly average seen in 3Q21.
  • The yield on benchmark government bonds fell yesterday. The yield on 2026 bond fell to 7.95%. Further, the yield on 2023 bond declined to 5.30%, while that for the longer-dated 2030 issue fell to 9.25%.

In early trade on Friday 12th November 2021, the US dollar is trading lower against the South African rand at R15.2886, while the euro is trading lower at R17.4896.  The British pound has declined against the South African rand to trade at R20.4272.

By the close of trade on Thursday 11th November 2021, the euro declined against most of the major currencies.

  • In the UK, economic recovery from the pandemic strayed in 3Q21, amid interest rate problems faced by the Bank of England. The Bank of England’s November policy meeting arrived with markets expecting the Monetary Policy Committee to raise Bank Rate for the first time since 2018. Given the solid recovery of the UK economy following a successful vaccination campaign, it seemed reasonable to expect that some extraordinary stimulus could be removed and for Bank Rate to return to the same level as in March 2020, when the UK headed into its first lockdown. The expectation of policy tightening also seemed consistent with the more hawkish tone from BoE Governor Andrew Bailey as inflation outturns reached 3.1% in September
  • Japan’s new stimulus package with fiscal spending expected to exceed 30 trillion yen ($263 billion) will include wage hikes for care workers, nursery school staff and nurses, government sources said Thursday. The monthly salaries of such workers, whose pay is regulated and said to be insufficient compared with other industries, will be raised by 3 percent, or 9,000 yen, in February, according to the sources. The package aimed at easing the pain from the coronavirus pandemic will be finalized by the government on Nov. 19
  • Brazil’s real led gains among Latin American currencies on Thursday as basic material and metal prices rose on China Evergrande cheer, while Mexico’s peso gained ahead of a central bank interest rate decision later in the day. Mexico’s peso rose 0.7% with the Mexican central bank, locally known as Banxico, set to raise interest rates for the fourth consecutive time at its monetary policy meeting. Estimates are for a 25 basis points hike to 5%, in its decision due at 2 pm ET (1900 GMT).

In early trade on Friday 12th November 2021, the euro slipped against the US dollar to trade at $1.1456, while it has marginally weakened against the British pound to trade at GBP0.8576.