Rand loses ground as dollar firms on weak German data
Analysts say the growing trade conflict between the US, China and the EU should be positive for the dollar, spelling further weakness for the rand
The rand was softer on Monday afternoon as the dollar held on to firmer levels against the euro while the pound fell through the crucial $1.30 level. The dollar gained after German headline factory orders contracted by a monthly 4% in June, significantly below consensus expectations. "This may be the first signs that trade disputes between the eurozone and the US might be having an effect," Barclays Research analysts said. The dollar has been firmer since Friday, despite nonfarm jobs data out of the US came in marginally lower than expected. Despite this, the US Federal Reserve is still set to raise interest rates another two times this year. The growing trade conflict between the US and China, among other countries and regions, should be positive for the dollar even though the foreign-exchange market currently "remains indecisive on the consequences", Commerzbank said.
The dollar will rise as long as the Fed reacts in a "normal" way to higher inflation from more expensive imp...
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