With renewed questions about the banking sector in the US and risk-off regarding the recession talk in the market, we have seen the market unsure of what can happen next, and the market has been trading erratically on the back of that. Just how erratic the market has been, we have seen the US dollar almost touching the 1.1100 level against the Euro, but the Rand and some other emerging markets have been under pressure. We have also seen Gold on the front foot. Generally, in a risk-off rally, we see Gold and the US dollar move in tandem, but not this time. The Rand also took a slide today, and at one stage, the Rand was trading at R18.45 against the US dollar. Whether the weakness is down to position squaring before the long weekend can be a possibility, and the truth will only be revealed next week.

We could be in for some volatility, especially in the low liquidity conditions of the next few days, with the US releasing GDP and PCE data. This could mean that Rand could be at a very different level when we walk into the office either on Friday or next week Tuesday. We will not rule out a test of the top side of the range at R18.50, as risk sentiment is firmly against the Rand at the moment.

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