Today’s market commentary from Andre Botha, Senior Currency Dealer at TreasuryONE:
After a week where the US President signalled a warning that he might withdraw from the trade talks, which saw the US dollar on the front foot, we awake this morning that the US-China trade talks could have a resolution by months end. This has caused the Rand to trade like a yo-yo in the past couple of trading session, by hitting a high of 14.2500 on Friday. This morning we have seen the Rand clawing back some of its losses and is currently trading at R14.1500.
This week will be dominated by headlines from the trade talks between the US and China and we have seen in the past week what a bit of speculation can do to the markets regarding the trade negotiations. Furthermore, we have the US non-farm numbers out on Friday which could raise the expectation of the Fed acting should the number exceed expectations. Locally, we have the GDP and Current Account number for the fourth quarter which could disrupt markets should it print negatively. But, for the moment, the US dollar is king.