By Andre Botha, Senior Dealer, TreasuryONE
All eyes will be on the US unemployment number as well as the non-farm payrolls number out this afternoon after yesterday’s jobless claims data showed a massive increase. Markets had expected the number of new claims to be 3.6 million whereas the actual number was 6.6 million. Unemployment is expected to have risen to 3.8% from 3.5% but the data could possibly surprise on the topside.
News that Trump had discussed production cuts in Oil with Putin and the Saudis, as well as China’s strategic stockpile buying, boosted the Oil price to above the $30 mark. Oil has pared some of these gains as the reality of the complete lack of demand hits home. Oil is trading at $28.65 this morning.
The Dollar DXY index has climbed to 100.243 as the greenback firmed on safe haven and liquidity demands. The Dollar is trading at 1.0845 against the Euro and 1.2380 against the Pound. The Rand continues to set record weaker levels, touching 18.6559 yesterday afternoon in markets short of liquidity and appetite for EM assets. The Rand is currently trading at 18.5700, still the poorest performing EM currency.
Wall Street had a positive day again but futures are down this morning. Asian stocks are marginally lower this morning while the JSE was up 2.78% yesterday. Gold jumped in New York to close at $1 612.41 and is trading unchanged this morning.
The number of COVID-19 cases passed the 1 million mark yesterday.
