The dollar is still the main driver

We spoke yesterday about the dollar markets being closed for Labour Day, and we have seen an increase in momentum for the dollar this afternoon as recession fears continue to rise. The dollar has been on the front foot for the most part of the day, breaking below 0.99 against the Euro to trade as low as 0.9865 earlier. This volatility did spill over into the local market, with the rand trading in a wide range of R17.08 to R17.33, with the local currency looking vulnerable, yet again after trading at its weakest level for the year just yesterday.

SA GDP misses the mark

Q2 GDP grew at a pace of 0.2% year-on-year, but it missed the mark compared to the 0.6% expectation. The rand did react briefly on the print but was quickly dismissed as the market continues to focus on the dollar and the upcoming Fed meeting at the end of September, and the ECB meeting later this week.