Rand testing the bottom of the range
For the third time in a week, the Rand is testing the bottom of the R18.00/50 range, as the Rand enjoyed the fact that the US dollar slipped a little today. The question now becomes whether the Rand is forming a base here or has enough momentum to break below R18.00. With little in the way of significant data left for the week, we suspect that the Rand could struggle to make a meaningful break of R18.00.
We did see some weaker-than-expected employment numbers out of the US, with the initial jobless claims coming in weaker than expected. This could push the US dollar to 1.1000 against the Euro, but it seems that the market is in a little bit of a lull at the moment. We still have a couple of Fed speakers this week, which will give us some insight into the Fed's path forward.
#ZAR #TreasuryONE
