By the close of trading yesterday, the South African rand strengthened against the US dollar.
- The strength came following an easing in risk aversion, with investors slowly returning to perceived riskier assets.
- Iraq’s parliament passed a resolution Sunday calling for the government to end the presence of foreign troops in the country in the wake of a U.S. airstrike that killed a top Iranian general. The resolution asks Iraq’s government to cancel the request for assistance from the U.S.-led coalition operating in the country.
- Meanwhile, South Africa’s IHS Markit SA purchasing managers’ index (PMI) recorded its sharpest rate of decline since October 2018 in December, due to intensified load-shedding and weak demand.
- In the US, services PMI advanced in December, indicating continued expansion.
- The yield on benchmark government bonds fell yesterday. The yield on 2020 bond declined to 6.77% while that for the longer-dated 2026 issue fell to 8.24%.
In early trade on Tuesday, the US dollar is trading 0.2% lower against the South African rand at R14.1840, while the euro is trading 0.2% lower at R15.8745. The British pound has declined 0.1% against the South African rand to trade at R18.6866.
By the close of trade on Monday, the euro declined against most of the major currencies.
- In the Eurozone, services PMI ticked up in December, signaling that the firms were optimistic.
- Investor morale jumped for the third month in a row in January, on account of positive signs an easing in US-China trade tensions.
- Producer price index (PPI) slightly improved in November, caused by a less prominent fall in energy prices. Meanwhile in Germany, services sector activity increased at its strongest pace in four months in December.
- Retail sales rebounded on a monthly basis in November.
In early trade on Tuesday, the euro has marginally slipped against the US dollar to trade at $1.1192, while it has weakened 0.1% against the British pound to trade at GBP0.8495.
TECHNICAL ANALYSIS
USD to ZAR Stats
Stats Data | Last 30 days | Last 90 days |
High | 14.7889 | 15.2774 |
Low | 14.0020 | 14.0020 |
Average | 14.3007 | 14.6236 |
Volatility | 0.63% | 0.6% |
CNY to ZAR Stats
Stats Data | Last 30 days | Last 90 days |
High | 2.10236 | 2.14687 |
Low | 2.00598 | 2.00598 |
Average | 2.04436 | 2.08014 |
Volatility | 0.62% | 0.58% |
AUD to ZAR Stats
Stats Data | Last 30 days | Last 90 days |
High | 10.0855 | 10.4123 |
Low | 9.79606 | 9.79606 |
Average | 9.89183 | 10.0223 |
Volatility | 0.45% | 0.56% |
GBP to ZAR Stats
Stats Data | Last 30 days | Last 90 days |
High | 19.4417 | 19.5471 |
Low | 18.3101 | 18.3101 |
Average | 18.7777 | 18.9283 |
Volatility | 0.57% | 0.65% |
EUR to ZAR Stats
Stats Data | Last 30 days | Last 90 days |
High | 16.4049 | 16.8544 |
Low | 15.6814 | 15.6814 |
Average | 15.9240 | 16.2175 |
Volatility | 0.54% | 0.59% |