The rand managed to close below the major technical level of R18.55 yesterday but lost ground during the day to test a new multiple-year high of R18.70 earlier today. Since then, we have seen some recovery on the local currency, whereby it drifted back below R18.60. The rand is treading water in a vulnerable area, with Friday’s Non-Farm payrolls and next week’s CPI numbers likely the next pivotable key for the dollar to push further.
We have seen more of the same during the day, with a stronger dollar being the main theme. The dollar run has however found some resistance today, and we could see some consolidation in the market before Friday’s payroll numbers. The dollar index is trading up at 105.60, with the 2yr yields falling from yesterday’s high to back below 5%.
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