All eyes on the United States

The rand report is delivered to you by Sable International

All eyes are on the US this week as tensions rise, electoral selections are made and impending rates of interest will doubtless be held at a relentless. All this amidst elevated pandemic chaos throughout the pond in Europe and the UK.

Although common market sentiment is that these risky occasion markers have already been priced in, the diploma that both Trump or Biden win by will transfer the USD. For instance, a landslide victory for Biden may see a weaker Dollar in the coming week. The ZAR is at the moment buying and selling at 16.15 in opposition to the Dollar, 20.91 in opposition to the Pound and 18.85 in opposition to the Euro.

Image credit score: Sable International

Last week’s enhance in the ZAR/GBP rate got here as a shock, following the damaging information out of Tito Mboweni’s Mid-Term Budget Proposal Speech. This raise, nonetheless, might be attributed to the disarray popping out of the UK as Boris Johnson introduced a second nationwide lockdown and Brexit commerce deal talks got here to a standstill. 

Back on residence soil, South African Airways was given one other bail out by the authorities to the tune of R10.5 Billion. This was met with backlash as the failing airline has been given a complete of R57 Billion since 1994. Eskom has additionally made a public assertion final week the place it posted a internet loss for the 2019/2020 monetary 12 months at R20.5 Billion. There might be an estimated lack of R26.2 Billion for the present monetary 12 months as a result of Covid-19.

Today is an enormous day for worldwide markets and it’ll set the tone for the coming months as the world struggles to recoup misplaced momentum and GDP from the Covid-19 pandemic.

Market occasion calendar

Tuesday 3 November 

  • US: Presidential elections

Wednesday 4 November

  • US: Balance of commerce September

Thursday 5 November

  • UK: BOE Interest rate choice
  • US: FED Interest rate choice

Friday 6 November

  • SA: Foreign Exchange reserves Protection Status


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