Weekly Round Up – 4 September 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.

The USD underwent a bearish beating this week with markets digesting the Fed’s policy in a negative manner before other data such as manufacturing and employment stats showed promise in the gradual recovery of the worlds power economy.
The greenbacks range of R16.55/$ – R16.97/$ followed within our downward channel as per the below graph, which is illustrative of its current four month run of declines.

The Euro steamed to a robust month long high in the early week touching a peak of R20.30, although the European Union currency maintains a descending momentum.
The EU boasted negative price data readings for the first time in 4 years, due to this fall into deflation the ECB is expected to implement monetary stimulus.
Touching on stimulus plans, France leaped into action to avoid economic collapse by announcing a €100 billion funding plan on Thursday.

The Pound remains steady in a gradual downward trend which is culminating in a sideways movement on GBPZAR.
Despite producing improving data there has a backlash weighing on the Sterling rooted in the effects of Brexit frustrations, fears of UK taxes and USD figures making positive headway .

South African Rand
The rand has had a ranged movement against USDZAR which saw the testing of R16.55/$ and highs of R16.95/$ – much cause of the fall in price was due to political tensions inside the ruling party, the reoccurring dilemma of corruption and struggle of electricity supply.
Next week kicks off on a sombre note with a dollar holiday on Monday which may see short-lived relief before macroeconomic data releases drop.
Stats to look out for include business confidence stats and what is likely to be the talk of week being our GDP figure release on Tuesday which are expected to contract greatly.

Technically : we have seen the fort held on the lower end in a resistance level of R16.55/$, while a break above R17.00/$ may signal a move toward R17.20/$ – which we also waited for last week without result, as the downside seems to be favoured in ongoing circumstances.



·         Low – Best Buy At Around 19.65

·         Support – 19.95

·         High – Around 20.15



·         Low – Best Buy Around 22.10

·         Support – 22.33

·         High Around 22.60

Our clients enjoy a daily market report for free when opening a business account with us.

Click here to sign up

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

stay in the know


    Need Help? Chat with us