Rand volatility picks up amid uncertainty in US-China trade talks

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Rand volatility picks up amid uncertainty in US-China trade talks
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The rand lost ground at the weekend following US President Donald Trump's threat to impose more tariffs on China

The rand was mixed against major currencies on Monday afternoon, as investors waited for new catalysts from either the US-China trade talks or the general elections.“With developments at home and external drivers in the form of renewed US-China trade tension seen pulling and tugging at the rand, investors should fasten their seat belts and prepare for a potentially volatile trading week ahead,” FXTM analyst Lukman Otunuga said.

Trump tweeted on Sunday that the US would impose new tariffs on China for $325bn worth of goods, calling into question whether a US-China trade deal would be reached soon, as the market had expected. The threat comes as Chinese delegates plan to travel to Washington this week in the hope of sealing a deal. Chinese officials have confirmed that the talks are expected to take place, although there are signs that there maybe a delay, Bloomberg reported.

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