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 lost ground this week, beginning around R17.13/$ and following a downward trend to today’s R16.70//$.
The talk of the week was undoubtedly the US presidential debate which resulted in a chaotic exchange of name calling, sentiment steadily swings in Bidens favour.
Volatility is expected to be widespread with President Trump announcing his entrance into quarantine after contracting Covid-19.
Furthermore, the long awaited announcement of house officials approving the $2.2 trillion US stimulus package which is expected to boost gold.

EUR/ZAR

The euro followed a bearish trend this week and dropped around 50 cents as predicted in last weeks round up.
Market players’ rising concerns over a second wave in Europe will continue to add duress to the eurozone.
Today is a big day for the EU and UK as a decision is hoped to be met when the two meet to discuss Brexit later on.

GBP/ZAR

The pound sterling continues to suffer the repercussions of negative sentiment around the looming no-deal outcome of Brexit.
The quid is also weighed down by pressure from the EU beginning legal proceedings as a result of the UK planning to break international law by going against certain terms of the separation agreement.
Additionally, London is experiencing a overflowing of new infection cases and this will likely affect investor sentiment.

South African Rand

The rand ended last week on a 1.1% decline and total loss of 5%, but recovered well this week despite a rally of tense events and economic data.
Firming from highs of R17.20/$ in the start of this week, shrugging of terrible unemployment data and effects of corruption to climb its way to our current levels of around R16.70/$.
This weeks gains aren’t necessarily rand strength at all but rather dollar weakness and the fortunate seeping of investor risk appetite on the merging markets.

Our range on USDZAR for next week : R16.34/$ – R17.03/$.

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