This apprehensive start to the week was felt in the markets as the pound fell to a 75-day low against the euro. Dropping at least 1% across the board against all major currencies and 1.4% on the futures market. However, the ZAR has come out on top this past week, strengthening along with most emerging markets on the back of positive developments regarding Covid-19 vaccines and higher investor sentiment that is currently driving their financial assets to relatively higher yields – who knows how long this will last due to South Africa’s recent downgrade into further junk status.
The rand is currently trading at 20.2442 against the pound, 18.372 against the euro and 15.173 against the dollar.
This upcoming week will see all eyes on the UK as the Pfizer Covid-19 vaccine rolls out to the public. If it is generally accepted by the public, the roll out in the US could come earlier than expected.
Market event calendar
Tuesday 08 December
- ZAR: GDP annual growth rate
Wednesday 09 December
- ZAR: Core inflation statistics
- UK: BOE financial stability report
Thursday 10 December
- US: Core inflation rate YoY Nov