By the close of trade on Friday, the South African rand strengthened against the US dollar.

  • There seems to be rising hopes that the US and China are closing in on a trade deal.
  • In the US, retail sales growth rebounded on a monthly basis in October.
  • Industrial production fell by the most in 17 months in October, as output for the manufacturing, mining and utilities sectors fell.
  • The NY Empire State manufacturing index unexpectedly fell in November.
  • Business inventories remained flat in September. Meanwhile, both the New York Federal Reserve (Fed) and the Atlanta Fed lowered their forecasts for US 4Q19 GDP growth to 0.4%.
  • The yield on benchmark government bonds fell on Friday. The yield on 2020 bond declined to 6.87% while that for the longer-dated 2026 issue fell to 8.38%.

In early trade on Monday, the US dollar is trading 0.1% lower against the South African rand at R14.6953, while the euro is trading marginally lower at R16.2585.  The British pound has gained 0.1% against the South African rand to trade at R19.0029.

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

  • In the eurozone, consumer price index (CPI) remained steady on an annual basis in October. The seasonally adjusted trade surplus narrowed in September.

In early trade on Monday morning, the euro has advanced 0.1% against the US dollar to trade at $1.1064, while it has weakened 0.1% against the British pound to trade at GBP0.8556.