The Rand shows its strength against the US Dollar and British Pound

This week saw the Rand strengthen due to a combination of stronger than expected local data and the weakening of the US Dollar and British Pound.

the rand shows its strength against the us dollar and british pound 1024x512 - The Rand shows its strength against the US Dollar and British Pound

This Rand report is brought to you by Sable International

The Rand consolidated within the R19.05 and R19.04 to the Pound range. The immediate impact of last week’s International Monetary Fund statement started wearing off on Tuesday. On Wednesday, the South African Reserve Bank released the business confidence data, which surprisingly rose for the first time since 2018. The Rand consequently displayed some upward momentum for most of the day, breaking the R18.91 against the Pound mark before retracing back to R18.98 on the day.

Some volatility
was noted at the end of Wednesday with the Rand opening at R19.09 to the Pound
on Thursday. The release of PPI data, which came in at the slowest rate since
2015, and a report that Eskom’s profit (after tax) has doubled since their last
profit report, saw the Rand gain significant ground. The Rand closed at R18.99
to the Pound for the day and opened at around R18.94 to the Pound on Friday.

The Rand remained at the upper end of the market on Friday and continued its upward trend on Monday as manufacturing data came in higher than expected.

cd81dff1 rand report graph 2019 12 03 - The Rand shows its strength against the US Dollar and British Pound

Internationally,
the US-China trade war continued to weigh on risk sentiment and contributed to
weakness in the US Dollar against the ZAR. British consumer confidence also
continued to be subdued as Brexit fears still dominate sentiment.

Market
event calendar

Tuesday 3
December 

  • South African GDP data

Thursday 5
December 

  • US balance of trade data

Friday 6
December 

  • South African forex reserves
  • South African SACCI Business Confidence Index
  • US non-farm payrolls

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