All hail the mighty Rand! The Rand and other EM's had a fantastic day with the Rand leading its EM peers by strengthening almost 2% during the day and within touching distance of the R14.80 level. The reason for the Rand strength is down to a couple of factors with a bit of risk sentiment that have turned favourable with equity markets on the front foot. The fact that the US dollar is losing a little ground only helped matters for the Rand. We still believe that there is some good sentiment in the market after the better than expected GDP numbers out of South Africa. Looking at the evening session, we believe that the positive sentiment could extend into the New York session and the Rand could look to make a charge at the R14.80 level. Of concern however that Gold is close to the $ 1550 level, which suggests that sentiment is not fully risk-on at the moment.
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