Morning Briefing

As Brexit dominates the Pound, economics and monetary policy dominates the Dollar, and political scandal dominates the Rand, FX markets may start sounding like a broken record. However, one should remain very much aware that this repetition and almost paradigmatic taxonomy of certain currencies is more fragile than it may seem. Even the slightest amelioration or deterioration of the current situation could have phenomenal or catastrophic consequences for the respective currency. The Dollar has been the unquestionable winner so far this week as markets reprice their approach to the Chairmanship of Jay Powell. Sterling meanwhile has been caught in the doldrums, threatened by a Dollar that currently trades at 1.3750 against the Pound and 1.1280 against the Euro. The Rand has weakened off mildly following a disappointing and somewhat frustrating cabinet reshuffle. The Rand now trades close to 16.40 against the Pound, 11.92 against the Dollar, whilst clinging on just above 14.50 against the Euro.