The Rand is full of surprises!
After drifting sideways for the better part of 2 weeks, the market finally moved out of its established ranges as the rand surprised many in the market and broke below the R14.20 level last week. <
Sideways – but for how much longer?
The rand resilience is surprising as a stronger dollar usually leads to a weaker rand. In the past few weeks, it has completely ignored the US dollar
Monthly Rand Review – March 2021
As we head into Year 2 of the pandemic, we can say, without any shadow of a doubt, that the COVID- pandemic has affected everybody.
Are we hanging on the edge of our seats?
The tumultuous economy that is Turkey had its biggest currency devaluation day in 20 years as President Erdogan sacked his Central Bank Chief.
Choppy waters ahead beware
So, US CPI and what happens to it in the future will be a crucial focus.
US Dollar starting to flex its muscles
The flight to US Treasury Yields had a knock-on effect, and we have seen riskier assets like EM currencies feeling some of the pain.
EM’s finally bow to US Treasury Yields
The Rand is used a lot as a proxy hedge for other emerging markets, and thus we tend to see the Rand overreact sometimes.
What budget will we get?
One of the areas of concern is how big the expected budget deficit will be in light of the COVID pandemic and how the deficit will be funded in the future.
How low can we go?
With talks of the stimulus package doing the rounds, EM’s are charging ahead as a definite yield play would come into effect once the package’s size is announced.
The Rand range happy
There are two factors at the moment at play with the US dollar. The first is whether the US will pass the $ 1.9 trillion stimulus package (or some form of it). The supposed effect that it will have