We have seen emerging markets under pressure after China stated that would only discuss certain topics with the US in the ongoing trade war. They will not accept a broad trade deal from the Trump administration. This caused the Chinese yuan to drop in offshore trading and placed EM under pressure.
USDZAR opened up at R15.04 and weakened to R15.18 and is currently lingering at R15.15. Turkey has been the worst affected as the US has stated that they will not support a military move into Northern Syria.
US equities opened in the red and oil gained almost 2% on the day. The pound remains under pressure as the looming Brexit date of 31 Oct draws closer without a deal on the table. EURUSD is again flirting with the 1.10 level.
Later in the week we see the release of the previous US FOMC minutes and this will give us an idea of whether rate cuts are on the table for later in Oct. With the string of poor data, the market is already pricing a 70% chance of a rate cut. For now the ZAR looks to remain range bound within the R15.00 to R15.25 range.