South African Rand Futures Market News and Commentary
The dollar index (DXY00) on Friday rose by +0.60%. The dollar index Friday extended Thursday’s gains up to a 5-week high. Expectations for the Fed to maintain its aggressive rate-hike path are boosting T-note yields and supporting the dollar. Also, weakness in the Chinese yuan is giving the dollar a boost as central bank divergence between the PBOC and Fed pushed the yuan down to a 1-3/4 year low Friday at 6.8188 yuan/USD. In addition, Friday’s stock slide has boosted the dollar's liquidity demand.
Hawkish Fed comments Friday from Richmond Fed President Barkin were bullish for the dollar when he said the Fed is "very seriously committed to returning inflation to our 2% target, and we’ll do what it takes to get there.” He added that he expects bond yields to rise as the Fed balance sheet shrinks.
EUR/USD (^EURUSD) on Friday fell by -0.49% and posted a 5-week low. Soaring German producer prices are bearish for EUR/USD after Friday’s data showed German July PPI rose a... Read more