South African Rand Futures Market News and Commentary
The dollar index (DXY00) on Friday rose by +0.19%. The dollar Friday rallied to a new 6-1/2 month high on carryover support from Wednesday when the FOMC signaled one more +25 bp rate hike this year and projected that the fed funds rate next year would be +50 bp higher than its June forecast.
Hawkish comments Friday from several policymakers gave the dollar a boost. Also, Friday’s better-than-expected U.S. manufacturing PMI news was bullish for the dollar. The dollar was undercut Friday by stock market gains, which reduced liquidity demand for the dollar.
The U.S. Sep S&P manufacturing PMI rose +1.0 to 48.9, stronger than expectations of 48.2.
San Francisco Fed President Daly said she is not ready to declare victory in the fight against inflation and said it is unlikely that inflation will reach the Fed's 2% goal in 2024.
Fed Governor Bowman said, "I continue to expect that further rate hikes will likely be needed to return inflation to 2% in a timely way... Read more