Dollar strengthens ahead of key inflation data and EU uncertainty

Source: Pexels

The upcoming French elections is keeping the euro under some pressure, while tomorrow is the first of the presidential debates between Joe Biden and Donald Trump.

The major impact on markets is going to come from Friday's US PCE price index number, which will provide further clarity on the inflation position in the US.

The rand closed on a softer note at R18.23 last night as the uncertainty surrounding the GNU weighs on the currency. The rand opened unchanged this morning as it consolidates in the last few days' 18.00/18.30 range.

Gold slides before PCE data

Gold is trading softer at $2,317 this morning as the prospect of higher-for-longer US interest rates and the relatively firm dollar sees demand for the yellow metal fall.

Platinum and palladium both retreated from Monday's stronger levels, while copper continues to fall on fears of lower Chinese demand.

The imposition of higher import tariffs on Chinese electric vehicles by the EU and US is raising fears of a renewed trade war between the West and China.

Oil continues to keep within a very narrow range with traders monitoring developments in the Middle East and the demand outlook. Brent crude is currently at $85.45 and WTI at $81.25.