The US dollar blasted through 12.45 level yesterday and all the way up to 12.65 versus the Rand. Opening this morning we are a fraction off that high, with the market currently trading at around 12.58 mid-market. That being said, we expect to see some better buying opportunities today of 12.50.  Based on the way the market has been trading over the last 48 hours, if we do test 12.50 it may be worth buying as we could see a push back up to 12.65 by the end of the day. This is primarily on the back of a stronger US dollar after US retail sales showed a rise of 0.3% during the month of April. The market still favours better yield opportunities at the moment in the US. Let’s see what the SARB will do next week with the South African interest rates.

In other currency news

The pound recovered a bit this week, last week’s decision by the Bank of England’s (BoE) to leave interest rates on hold obviously had a big impact on the market. The MPC has maintained their dovish position on UK interest rates and appears to be in no rush to start increasing UK interest rates. In Euro news, we’ll be looking at ECB President Mario Draghi’s speech later on today to see what he has to say about European interest rates, more than likely he’ll be fairly dovish as well so we may see the Euro come under selling pressure later. The Euro is currently trading at around 14.86 against the South African Rand. 

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