Today’s market commentary from Andre Botha, Senior Currency Dealer at TreasuryONE
The Rand consolidated its break below the R14 level yesterday, as the market still had some momentum left after the dovish comments by Fed Cahir Powell on Friday. We have seen the US dollar slipped against all major currencies and looked like breaking above the 1.1500 level against the Euro. There is also a sense of optimism in the air regarding the US-China trade talks as the equity markets in the US and Asia traded in the green yesterday.
Today it looks like the momentum of the past couple of days will continue, but one senses that it is running out of a little bit of steam, which would suggest that the Rand might be somewhat range bound today. Further momentum could be had tomorrow after the release of the US Fed minutes should the extent of the Fed dovishness be larger than expected.