David Gracey

David Gracey

Head of Foreign Exchange and Fixed Income Trading

Currency Comment - Yawn

Winter has arrived here in Johannesburg, which means that Sunday afternoons are the perfect time to sit oneself down in front of a sports filled television.

And this weekend promised to be an absolute doozy.

o    Moto GP,

o    Formula1,

o    IPL,

o    And then of course Liverpool vs that other team, from a few miles down the road.

·        What an absolute waste of time.

·         Brad Binder managed to fall over, twice, in one race. Lewis Hamilton managed to win, just for a change (although the race itself was quite exciting, I even managed to stay awake for the entire duration), The IPL is just a bit of tip and run, although Pollard did put on a great performance. At least SA won the 4x100 relay world champs, although I do think my neighborhood jogging club could have done well at this meet. There were no Jamaicans or Americans present. We did however manage to pip Brazil to the post.

·        And then the big one. When one watches Man Utd take to the field, one does become used to seeing a number of trouble makers running around. So in that regard Sunday was no different. What was missing however, was a football game.

·        Now I’m sorry, I believe in a humans right to protest. What I don’t believe in is that protest action disrupting the usual course of business. Especially when said protest is about the ownership of a football club.

·        As far as I’m concerned Man Utd, at the very least, should be docked some points. If I had my way they would be relegated.

·        Anyway, now that I’ve used some of my words on the weekends sporting events I suppose I had better say something about the currency markets.

·        Drums fingers looks for inspiration, listens to the birds outside, thinks of something to say, scratches head, takes a walk, types a few words, deletes and drums fingers again.

·        It’s all a little yawn at the moment.

·        Exporters remain dominant from a client perspective. And so that’s keeping a lid on the top side.

·        From an international viewpoint, focus remains on the bond markets in Europe and the U.S, but for now most of the selling pressure has abated. Even here in S.A, treasury has announced reduced weekly auctions – which has reduced some of the upside pressure observed recently.

·        Equity markets remain buoyant and Central Bankers remain accommodating.

·        So there you have it from the exciting world of global finance. Most dentists are having more fun than traders at the moment.

·         Good luck, we will catch up again as soon as something substantial takes place.