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 dollar continued to remain vulnerable this week, gearing up for a weekly decline of around 0.3% against major currencies.
Factors preventing the greenback from reversing its current downward trend include gloomy data results such as elevated jobless claims, housing and the Philadelphia Fed business index dropping, US stock futures trickled down and no stimulus being offered by the Fed.

EUR/ZAR
The 2nd most traded currency remains tame against most currencies with its performance being observed by the European Central Bank, should duress seep through then it is expected stimulus will be introduced as required to stabilize the Eurozone’s economy.
An approaching talking point for the Eurozone next week will be the PMI data which is expected to come out around 51.6.

GBP/ZAR
The Pound Sterling has suffered this week due to Brexit turmoil.
With pressure mounting from the EU and US, officials have cited that with each passing day the likelihood of a no trade deal is increasing.
Worries over a possible break in the treaty and international law has seen the GBP drop almost 60c this week and testing support levels at R20.95, shattering this level may see a further decline to around R20.50’s.

South African Rand
The rand took advantage of a weak dollar this weak, grazing a 6 month best of R16.20/$ midweek and rallying further to test R16.16/$ last night.
Investor appetite has peaked toward riskier currencies and this has benefited emerging market currencies greatly.
Talk of the week for the rand was yesterday’s SARB monetary policy meeting which yielded no change in the rate, with an indication of increases in 2021.

Eskom worries steadied with power systems sufficiently improved and thus blackouts were reduced this week, additionally efforts were ongoing for the entity to recover unpaid debts from certain municipalities.

Not forgetting our approaching shift to Alert Level 1 – in an almost strategic announcement on Wednesday night, President Ramaphosa revealed that restrictions will be eased and international boarders are to open on 1 October.

Our range on USDZAR for next week : R15.95/$ – R16.42/$.

Our clients enjoy a daily market report for free when opening a business account with us. If you feel like this is adding value to your business, sign up below.

CLICK HERE TO SIGN UP FOR FREE