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 stumbled into the start of the week at a low of R16.35/$ on USDZAR, as concerns over President Trump’s health clouded investor sentiment.

After news of Trump’s improvement the dollar found its footing, stabilized and brough risk appetite back to the markets.

However the reprieve was brief as markets slumped once more upon the US President’s declaration of a halt on stimulus talks.

Vulnerability remains on the dollar with the outcome of the November 3rd elections unclear yet slanted in Joe Biden’s favour.

EUR/ZAR

The euro traded between a 40 cent range on EURZAR this week, expectations are that a correction is overdue and consolidation may lead the euro to trend further downward.

Pressure is presumed to shroud the euro as a second wave of the coronavirus hits Europe and the implementation of minor lockdowns impact the Eurozone’s economic recovery.

Moreover, with President Lagarde noting the recover may be riskier than expected, more stimulus is expected and further interest cuts may be on the cards.

GBP/ZAR

Brexit disappointment and increased viral infections has weighed down on the pound this past week.

Observations have been made that recent lockdown measures aren’t having any noticeable success in decreasing the infection curve and thus worries mount on how long the restrictions will last, cost of lives and the impact on the British economy.

Despite possible progress in Brexit negotiations and a looming extension in talks, we expect GBPZAR to have a tough time breaking above R21.70/£.

South African Rand

The rand’s price action this week can be described as tentative, trending anxiously between a range of R16.36/$ – R16.74/$.

The US elections is the market moving apex at the moment, currency pairs will continue to range according to the impact of Novembers election.

Emerging market sentiment is on edge during the current uncertainty, however our ‘Randela’ hasn’t faired terribly despite headline strikes and grim business confidence data.

USDZAR had a strained week, and we expect next week to be all the more volatile with an approaching budget speech and Thursday’s 2nd round of US debates.

Stronghold support levels remains at R16.35/$ and R16.55/$, how USDZAR behaves above or below these levels will indicate a direction on the pair.

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