September 08, 2025
MyCURRENCY News | Week 36 2025
What we know
Last week, USD/ZAR held within its narrow range of 17.41 to 17.81 for most of the week. The release of US non-farm payrolls and employment data on Friday triggered renewed volatility, with the Dollar losing nearly 20 cents against the Rand.
Non-farm payrolls came in softer than expected, with only 22,000 new jobs added to the payroll, substantially lower than the anticipated 75,000. In addition, ISM manufacturing indicated its sixth consecutive contraction, once again revealing a figure below 50 for the month of August. The dollar index reflected this data and fell to its lowest level since July, at 97.4 on Friday.
While the Dollar has struggled to keep its head above water, gold has been surging, reaching an all-time high on Friday at USD 3,599.61 per ounce. This aligns with expectations around the Federal Reserve cutting interest rates in the US on 17 September, together with a risk-off sentiment among investors as global uncertainty prevailed.
With limited news-driven movements from the UK and Europe, GBP/ZAR and EUR/ZAR trading mostly mirrored each other during the course of last week. The majority of the movements reflected investors adjusting the value of the Rand in response to US news as they shifted their sentiment.
What others say
Reuters – US manufacturing contracts for sixth straight month amid tariff drag
“U.S. manufacturing contracted for a sixth straight month in August as factories dealt with the fallout from the Trump administration’s import tariffs, with some manufacturers describing the current business environment as “much worse than the Great Recession.””“
Aljazeera – As the US stock market smashes records, some investors fear it’s overpriced
“US stocks are pricier than ever before by some measures, raising fears that the market could be headed for a crash.“
Moneyweb – Xi unites world leaders sick of being pushed around by Trump
“While Donald Trump is hard to beat when it comes to stealing the global spotlight, Xi Jinping proved this week he can also put on a good show.“
What we think
Last week we said, “On Wednesday, John Williams, Head of the New York Fed, made dovish comments, reinforcing investors’ expectations around the likelihood of Fed rate cuts.”
After the softer-than-expected job growth seen on Friday, the likelihood of an interest rate cut in the week ahead has increased further. Investors will closely monitor the PPI on Wednesday and the inflation data on Thursday as their final indicators ahead of the Federal Reserve’s interest rate decision on 17 September, with a 0.25% cut widely expected.
The ECB will announce its interest rate decision on Wednesday, followed by a press conference. Meanwhile, in the UK, GDP figures will be released on Thursday.
Our range for the week: 17.40 – 17.75.
Have a great week ahead.