US & China To Sign Trade Deal
USA & China Trade Deal Actually Hurts The Rand
While most people know that some sort of trade war has been underway between the USA (Mr Trump) and China many do not realize that it has been having an affect on the Rand.
For most people this whole back and forth between Mr Trump and all of China has simply raised concerns about Huawei products being able to have Google apps and services preloaded or not.
The trade war now seems to be coming to a close or at least a meaningful first step towards being resolved (until the Donald’s next tweet). This week will see a stage one treaty or agreement signed between the USA and China which is intended to get trade back on track.
The Rand Reacts
The trade deal has made investors now shift their attention from currencies and economies like South Africa over to the signing of phase-one of the trade deal this week and the Dollar and Yuan.
As a result, the Rand took yet another knock this week following on from the the whole recent Eskom ‘stage 8’ loadshedding threat debacle and the ongoing political tension in the Middle East and its petrol price increase effect.
This means unfortunately that the Rand has continued to lose all of the progress it had been making against the Dollar.