Daily Commentary - 18 August 2017
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- USD / ZAR 13.2449 - EUR / ZAR 15.5569 - GBP / ZAR 17.0990 -
18-August: No data of real importance
Yesterday the ZAR hit 13.1350 after a sharp selloff in US equities which saw the Dow lose more than 1.2% and the S&P more than 1.5%. It seems the bullish feel that the Trump administration initially granted the market is starting to abate as positive growth expectations of the US economy are starting to be revised downward. However, during the day the Rand gradually lost ground to the Greenback in a risk-off sentiment, weakening around 20 cents and hitting an intraday low of 13.30 yesterday evening in the wake of a terrorist attack in Barcelona. It’s a touch disappointing that the Rand didn’t manage to hold onto its gains below the 13.20 level but we may have to hold onto our horses before that materialises which should be in upcoming days.
The overriding focus for now will be on Trumps administration and how they will reconstruct a more inclusive administration that will be able to re-establish more trust of business in general. Of late, investors over-scrutiny of Trumps policy missteps have precipitated in his declining approval and the Greenback having a tough time against the other major currencies, however Trumps top economic advisor Gary Cohn assured us that he has no plans on resigning from Trumps administration which helped put the Dollar up around 0.1% against its major peers – for now.
The Rand is currently trading at 13.21 at the time of writing and with very few figures of any importance coming out today we are heading for a stable close for the week. Our 13.10 support level held firm yesterday.
Our range for the day: R 13.14 -R 13.34.