The somewhat controversial US biotech company, Colossal Biosciences, claims they are on track to resurrect the woolly mammoth and have unveiled their woolly mouse as proof that their genetic altering techniques work.? Critics say that their next pursuit of getting an Asian elephant to grow hair is not resurrecting anything.
These are the mid rates at 7:05 today:
Brent Crude = $70.84 per barrel
- Interesting times in the currency market indeed as the one thing that you would associate with heightened risk-off sentiment is not happening.? Dollar weakness is making life easy for the Rand despite all the headlines as we opened at R18.65 to the Dollar yesterday and strengthened to R18.46 by the evening session.
- Trump’s tariffs are official with a 25% fee now levied on all goods imported from Canada and Mexico while Chinese imports to the US are attracting a 20% fee.? China and Canada have already responded with tariffs on US goods while Mexico has confirmed they plan to follow suit, but with fears of a damaging trade war rattling the equity market the classic safe haven dash into the Dollar is not happening and that’s because of what the market is predicting these tariffs will actually end up doing.? Prospects of higher US inflation and lower US economic growth have seen the Dollar Index fall to its lowest level since the 6th of December and the Rand is back below R18.50.?
- Speaking before the US congress last night Donald Trump admitted that there will be “a little disturbance” for the US as a result of his now implemented tariffs, but that he is Ok with that.? Of course things can change in an instant, and rumours are already circulating about an announcement coming as soon as today, but as things stand the market is betting that tariffs will ultimately push prices up which will limit the spending power of the US consumer and therefore cool economic growth.? The Dollar is being shunned in this environment and for the time being the Rand has strengthened when just the opposite would be expected.?
- The Dollar is on the back foot but the Euro is advancing at the same time which is putting extra pressure on the Dollar Index.? Yesterday incoming German chancellor Friedrich Merz announced a €500bn fund aimed at increasing their infrastructure and defence spending, a plan that lays the framework for a significant uptick in German economic growth which in turn delivered a strong tailwind for the Euro.? Analysts at Deutsche Bank immediately said their 1% GDP forecast for Germany now faces serious upside revisions and this positivity spilled over into other European countries, and of course the Euro.? ?
- The following is from Reuters:? The Euro climbed to a three-month peak against the U.S. Dollar on Tuesday after Germany's conservatives and Social Democrats announced proposals to set up a?500 billion Euro fund?for infrastructure and overhaul borrowing rules aimed at increasing defence spending. "It sends a clear signal that Germany is serious about its defence, it sends a clear signal to Ukraine and at home, it sends a clear signal that Germany is serious about infrastructure spending," said Holger Schmieding, chief economist, at Berenberg in London. "This strengthens Europe and should underpin Euro gains although there are trade risks to consider."
- Local market data today sees our services PMI at 9:15 and yesterday our Q4 2024 GDP report disappointed which meant the year as a whole only grew by 0.6%, down from 0.7% in 2023 even though we enjoyed no load shedding for most of last year.? ?
- Possible USD mid rate trading ranges in the Rand today are R18.35 and R18.65.
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