As we start the last week of July, the rand trading as a yo-yo is back in full force, after some rollercoaster trading in the previous week as well. It has been a tough month in many facets, with t
Across the world, we’ve seen riots and protests; in France, protests against the introduction of Covid passports by Emmanuel Macron and locally the significant social disruptions with widespread
The rand traded in a very narrow 20 cents range for most of last week in what could only be described as a lacklustre week. We feel a big emphasis was placed on the US Fed minutes released on Wedne
The market’s not paying much attention to anything else except the US dollar and data from the US.
In the past couple of months, we have seen the market reacting quite wildly to the non-farm number, and we expect much of the same should the number miss the consensus number of 650k.
The rand went from the strongest EM currency to the weakest EM currency (in terms of value lost) in a two-day trading span.
We need imports to pick up for our economy to grow, which clearly shows us that the South African economy is still dragging in our COVID recovery.
With the US economy coming out of the throes of the pandemic, the US non-farm payroll number has been pushed front and centre again in importance as a sign of US recovery.
The world’s eyes are focused on the US economy and how it will react in the early days of reopening its economy in a post-pandemic world.
On a technical front, the next major level is R13.80, which will open the door for a run to R13.30.