U.S. embassies issue evacuation warnings across Middle East amid Iran strikes
If stability was something that you were looking for in this last week, then you were looking in the wrong place...
...however, it does seem that the Rand is in a bit of a range bound area, solidly above R15 to the Dollar, testing its worst levels in 2019.
It was a week of all the usual action, with local and global politics taking center stage - combined with major economic events globally.
And so, let's get stuck into the full review to give you everything that happened...
Here are the most important points from the week:
- SA Inflation - out of the blue, SA inflation made a huge recovery despite expectations, giving consumers a much needed boost...
- Interest Rates - with both SA & US interest rates in the spotlight, it was a big week with Trump breathing down the neck of Fed chair Powell.
- Trade War - and as if that wasn't enough, the Trade War was well and truly center stage again
- ANC policies - and too center stage was ANC policies being questioned, especially as to the new NHI and Pension Fund discussion
To start with, Rand opened the week around R15.20 to the Dollar, having built a little momentum heading into the weekend.
However, that quickly changed over the next couple of days as we saw the market skyrocket to R15.49, the Rand's worst level since September 2018.
Despite the US Government's best attempts to stop concerns around an imminent recession, they were clearly very real, and this added to the Rand's volatility - despite signs that there may have been some progress in the US/China trade talks and a positive outlook for US growth.
It was also a look forward to Moody's decision keeping the headlines. Talk of another massive financial bailout for Eskom has put South Africa on thin ice with Moody’s. The country is said to be fighting a losing battle to keep its last remaining investment grade credit rating.
Foreigners have already begun dumping R2 billion worth of government bonds...
...a very worrying sign.
Thankfully though, the markets found a way to turn things around for the better in the second half of the week, as we saw the Rand slowly battle its way stronger.
There was some good news to keep the ZAR buoyant such as the Inflation figures coming out showing an impressive decrease to 4% instead of the expected 4.3-4.4%. Expectation now was for SARB to hold Interest Rates steady...
...and the Rand liked this pushing steadily lower.
And as the week went on, the stronger the market went, slowly edging back into a far better position than where it began...
...that was...until Friday afternoon.
