LOCKDOWN LEVEL 2 [DAY 14]  

TOTAL DAYS 158 – 07 HOURS 50 MINUTES

 By the close of trade on Friday, the South African rand strengthened against the US dollar.  Amazing how the winter has flown by, we ready to dive into Spring.

  • The greenback lost ground, following the US Fed’s dovish tone. Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases, said this weekend, “The way the pace of the enrollment is going on and the level of the infections that are going on in the United States, it is likely that we’ll get an answer by the end of the year.”  The Chief of the U.S. Food and Drug Administration is prepared to bypass the full federal approval process in order to make a Covid-19 vaccine available as soon as possible, Insisting that the move would not be due to pressure from the Trump administration to fast track a vaccine
  • In the US, the goods trade deficit widened in July, as trade still hasn’t recovered from the coronavirus pandemic.
  • On the contrary, personal spending increased in July, supporting an economy struggling to emerge from the grip of a coronavirus pandemic. Personal income also rose during the period, on account of government payments to businesses to keep employees on payrolls.
  • America’s labor market probably extended its rebound in August to push the unemployment rate below 10% for the first time since the pandemic struck. With little more than two months before the U.S. election, re-attaining that milestone in this week’s jobs report could provide ammunition for President Donald Trump to claim the economy is sustaining a recovery under his leadership. Trump’s  Democratic opponents, led by Joe Biden, are likely to question whether such improvement can durably continue as America struggles to control the coronavirus.
  • The Michigan consumer sentiment index slightly rose in August.
  • Hong Kong and mainland China stocks rose in early trading on Monday, after China’s August economic data pointed to steady growth in the factory and services sectors.
  • Thailand’s baht could be at a turning point. It’s the second-worst performing currency in Asia this year, but expectations that the economy may bottom out over the next few months is spurring some bullish bets. The baht lost ground as Thailand’s tourism-dependent economy was hit hard by travel restrictions to control the coronavirus spread. It’s down almost 4% against the dollar this year, just behind the Indonesian rupiah. Though, it’s showing signs of revival with gains of 0.5% in August.
  • The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 7.42%. Further, the yield on 2023 bond advanced to 4.59%, while that for the longer-dated 2030 issue rose to 9.30%.

In early trade on Monday [Month end], the US dollar is trading 0.3% lower against the South African rand at R16.5785, while the euro is trading 0.2% lower at R19.7349.  The British pound has declined 0.2% against the South African rand to trade at R22.1114.

By the close of trade on Friday, the euro declined against most of the major currencies.

  • Policy settings will likely remain stable in the wake of the resignation of Japan’s long-serving prime minister, Shinzo Abe, says Fitch Ratings. However, the resignation brings forward the policy uncertainty anticipated in the run-up to the general election, which is due by October 2021.
  • German consumer morale worsened in September, casting some doubt on whether household spending in Europe’s largest economy is powerful enough to drive a strong recovery from the COVID-19 shock.
  • On the other hand, the eurozone’s economic sentiment index rose in August for the fourth consecutive month after a record slump caused by COVID-19 lockdowns in March and April.
  • The New Zealand stock market website crashed on Monday morning following another cyberattack on the NZX but trading has continued unaffected. Trading on the New Zealand stock market was disrupted on Tuesday, Wednesday, Thursday and Friday as a result of a sustained cyberattack on NZX, a listed company responsible for operating the sharemarket.

In early trade on Monday, the euro has advanced 0.1% against the US dollar to trade at $1.1912, while it has gained 0.1% against the British pound to trade at GBP0.8923.

TECHNICAL

USD to ZAR

Stats Data Last 30 days Last 90 days
High 17.7054 17.7054
Low 16.5726 16.4054
Average 17.2268 17.0314
Volatility 0.8% 0.87%

CNY to ZAR

Stats Data Last 30 days Last 90 days
High 2.54178 2.54178
Low 2.41424 2.33970
Average 2.48451 2.43052
Volatility 0.74% 0.86%

MUR to ZAR

Stats Data Last 30 days Last 90 days
High 0.44568 0.44568
Low 0.41364 0.40654
Average 0.43325 0.42666
Volatility 1.02% 1.13%

AUD to ZAR

Stats Data Last 30 days Last 90 days
High 12.6675 12.6675
Low 12.1089 11.5142
Average 12.3995 11.9948
Volatility 0.78% 0.7%

EUR to ZAR

Stats Data Last 30 days Last 90 days
High 20.8201 20.8201
Low 19.7468 18.7813
Average 20.3732 19.6160
Volatility 0.73% 0.78%

GBP to ZAR

Stats Data Last 30 days Last 90 days
High 23.1524 23.1524
Low 22.1201 20.8806
Average 22.6199 21.7558
Volatility 0.74% 0.78%

COVID NEWS:

https://mediahack.co.za/datastories/coronavirus/dashboard/

Provincial

https://mediahack.co.za/datastories/coronavirus/provinces/