Rand under pressure
We have seen the Rand almost lose One Rand today, with the Rand trading between R17.0700 and R17.9500. The massive range was due to the rumors in the market about President Ramaphosa and his possible announcement of resigning following the Phala Phala report. The market has not taken kindly to the news, and we have seen the Rand on the back foot and massive volatility due to the rumor mill spilling. Until we have some concrete news, we can expect the Rand to remain volatile, and the Rand could have a knee-jerk should the rumors be true. We expect a knee-jerk weaker, but the main direction of the Rand will be decided on "what happens next" should the President resign. This scenario would be who would take over etc.
US dollar on the backfoot
With Jerome Powell stating that interest rate increases could be smaller going forward, we have seen the US dollar under pressure. The greenback is currently trading at 1.0511 against the Euro. This means that other EM currencies are much stronger than the US dollar. The Rand, due to local issues, is lagging far behind, and the cross rates with the Euro and GBP should look attractive for exporters at current levels. The News from the Fed has also meant a shot in the arm of Gold, and the yellow metal is close to the $ 1800 mark. Brent Crude is flirting with the $ 90 per barrel and is currently trading at $ 88.96 per barrel.
#USDollar #ZAR #PhalaPhala #PresidentRamaphosa #ANC
