In the loop 10 June 2026

In the loop

Shireen Darmalingam

What you should know this morning:

The rand is weaker this morning, at R16.55/$, after closing weaker yesterday (R16.53/$*).
EM currencies were mixed yesterday; the RUB (+1.6%), PEN (+1.6%) and CLP (+0.7%) were the biggest gainers; the HUF (-0.2%), TWD (-0.2%) and ZAR (-0.1%) were the biggest losers.
Asian equity markets the Nikkei, Hang Seng and Shanghai Composite are down.

Iran war: the US has launched strikes against Iranian targets, hitting air defence systems, command-and-control facilities, and surveillance radar installations near the Strait of Hormuz.
Washington described the operation as a measured response to recent attacks on US personnel and international commercial vessels operating in the region.
In response, Iranian Foreign Minister Abbas Araghchi said that Tehran would not allow any attack or threat to go unanswered, while Iran's joint military command stated that it had conducted strikes against several US military bases across the region.

Central bank watch: the Bank of Canada is likely to hold the overnight rate steady at 2.25% today.
Investors will keep an eye on comments made by Governor Tiff Macklem after the meeting.
Macklem is expected to reiterate the bank's commitment to the bank's 2% inflation target.

China's CPI came in at 1.2% y/y in May, unchanged from April.
Core CPI undershot expectations in May, increasing by 1.1% y/y, down from 1.2% y/y in April.
PPI accelerated to 3.9% y/y in May, in line with expectations, and up from 2.8% y/y in April.
The increase comes on the back of higher commodity costs and demand for electronics and nonferrous metals.

US existing home sales increased more than expected in May, by 3.2% m/m, to 4.17 million units.
This is the highest level since December 2025 and above market expectations of around 4.07 million units.
On a y/y basis, sales were up by 3.2% in May.
The improvement was supported by a modest increase in housing affordability, stronger household incomes, and a rise in the number of homes available for sale.
However, elevated mortgage rates and still-tight inventory continue to constrain activity.
The median existing home price rose 1.3% y/y, to a record $429,300, in May.

The US May CPI report will be a key focus today.
Headline inflation is expected to have increased to 4.2% y/y in May, from 3.8% y/y in April.
On a m/m basis, CPI is expected to have increased by 0.5% in May, following a 0.6% increase in April.
These increases are expected largely on the back of higher gasoline prices.
Core CPI is expected to have increased to 2.9% y/y in May, from 2.8% y/y in April.

Brent crude oil is currently at $91.62/bbl; ($91.45/bbl*).
Gold is at $4184/oz ($4260/oz*).
SA CDS 129bps*, Brazil 125bps* and Turkey 238bps*.
Yields: US 10yr at 4.51%*, German bund at 3.04%*, SA 10-year generic at 8.78%*, SA's R2035 at 8.60%*.

* Denotes yesterday's close.

Key events and data:

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