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

  • The deadly coronavirus outbreak, has had a massive impact as investors gauge the effect of the virus on the global economy. This is a nerve-wracking week for global investors with exposure to Chinese assets: the country’s markets are closed for the Lunar New Year, leaving them unable to hedge risks arising from the coronavirus epidemic.
  • BREAKING: Coronavirus death toll rises to 100 from 76. Hubei also confirms 1,291 new cases.  The National Institute for Communicable Diseases (NICD) has assured South Africans it is prepared if the coronavirus makes its way to South Africa.
  • Meanwhile, in the US, new home sales unexpectedly dropped in December, on account of shortage of more affordable homes. However, the housing market remains supported by lower mortgage rates.
  • The yield on benchmark government bonds ended mixed yesterday. The yield on 2021 bond declined to 6.57% while that for the longer-dated 2026 issue rose to 8.13%.

In early trade on Tuesday, the US dollar is trading 0.1% lower against the South African rand at R14.6024, while the euro is trading marginally lower at R16.0956.  The British pound has marginally declined against the South African rand to trade at R19.0666.

by the close of trade on Monday, the euro advanced against most of the major currencies.

  • German business morale deteriorated unexpectedly in January as the outlook darkened, a survey showed on Monday, suggesting that Europe’s largest economy got off to a slow start in 2020 after narrowly avoiding a recession in the previous year. The Ifo institute said its business climate index fell to 95.9 after 96.3 in December. The January reading confounded a Reuters consensus forecast for a rise to 97.0. “The German economy is starting the year in a cautious mood”, Ifo President Clemens Fuest said in a statement.
  • The European Central Bank (ECB) board member, Yves Mersch, stated that the central bank’s ultra-easy monetary policy might be fueling asset bubbles, which may trigger future crises.

In early trade on Tuesday, the euro has marginally advanced against the US dollar to trade at $1.1022, while it has marginally gained against the British pound to trade at GBP0.8441.