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 saw volatile but convincing weakness against the Dollar this week.
Consumed in an upward trend we saw lows in the beginning of the week starting at R16.99/$ and after touches over the symbolic R17.50/$, the USDZAR reached a high of R17.66/$.
The US had some positive manufacturing data early in the week, as well as firm stock gains after Microsoft showed interest in purchasing Tik-Tok.
Upbeat data is threatened by US-China tensions and congress’ inability for a stimulus agreement, once a decision is reached on the package we may see further gains on the greenbacks end.

EUR/ZAR
The 2nd most popular currency globally showed gains this week, kicking off on a good note with productive manufacturing data which showed a 0.82 increase – eluding to business conditions improving in the manufacturing sector which contributes largely to the GDP of the Euro Zone.
Analysts are advocating for caution, expecting that the currency may be affect by conflict on digital policy stance.

GBP/ZAR
The UK continues to have apprehension over Brexit, however the Pound Sterling remains steady after the Bank of England often known as “The Old Lady” kept the interest rate unchanged and the Quantitative Easing program also unaltered at GBP 745 billion.
The GDP figures were amended to the upside and the unemployment and inflation targets were set downward, which adds to positive sentiment on paper and has thus kept the Pound looking firm.

South African Rand
A turbulent few days for the Rand and emerging markets, our “Randela” submitted to losses against most of the currencies across the board.
We saw a 10 week low on USDZAR of R17.66/$, after the dollar’s positive data stimulated investors pallet.
The volatility is poised to continue with lockdown restrictions causing investment losses in the alcohol and tobacco sectors, as well as corruption making headlines over mis-usage of stimulus and PPE funds.
Our local mining sector remains prosperous as gold’s pullback is still being anxiously awaited as the bullion pushed to new all time highs of $2075 per ounce.

Our range for today: R17.40/$ – R17.64/$

 

EUR/ZAR

For the 4 day week coming we are watching the range: R20.29 – R20.91.

Should the Rand strengthen we could see an extension down to the lower R20.00’s.

 

GBP/ZAR

We are watching the range of R22.65 – R23.24 for the 4 day week coming.

Should the Rand strengthen we could see an extension down to R22.45.

Need a more daily indepth market report?  Our business clients get this for free each day!