Weekly Round Up - 31/07/2020

In our weekly round up this week, we look at some important data released and the affect this has had on the currency market.

USD/ZAR

The Rand has had a rocky week against the Dollar. We have seen lows of R16.35/$ and a high of R16.95/$ thus far.

The U.S economy suffered their largest downturn since the 1940s, releasing shocking GDP data at an annualized figure of -32.9% but still coming in better than the expected -35%

Despite the dreadful numbers released, we have seen investors move back into the Dollar after the Gold frenzy has paused.

EUR/ZAR

Economic output in the Euro area is projected to have declined by a record -12% for the quarter, taking the annual rate to -14.5%.

Having said this, Europe is set for a strong bounce back in the 3^rd quarter as EU politicians have finally resolved their difference on the 750 billion Euro rescue fund.

GBP/ZAR

The UK government recorded their highest number of cases yesterday in more than a month, a total of 846 new Covid-19 cases.

The GBP is set to weaken due to “stuck in the mud” Brexit negotiations. Prime Minister Boris Johnson is moving forward to end the transition by December 31 but is facing constant hurdles, besides a global pandemic.

Local South African Rand

Gold touched its highest selling point in years at close to $2,000 per ounce.
SA unemployment fell to 30.1%
The IMF granted a $4.2 billion loan to SA’s covid-19 relief package.
Eskom was given permission to increase tariffs.

Coming through with some late changes in the week, we have some new lockdown rules! Cabinet decided yesterday to extend the national lockdown curfew from 9pm to 10pm to accommodate for restaurants and workers. Hotels and guest houses can now host leisure travellers from within their own province.

We have put out some levels to watch for the week on the currency pairs listed below.

Our range for the USD/ZAR pair that we are watching for the week is in the red oval coming in with support around R16.60/$ and a possible high of R17.14/$ before touching R17.20/$ line.