Research & Analysis

We had three reasons to believe that the SSA economies would be rather resilient facing the Covid-19 pandemic. We were referring to a foreseeable natural immunity of the Region citizens, to a pressure on the authorities to ease the barrier measures as well as to a limited exposure of SSA’s countries to the tourism sector. 

At the end of this 1st quarter of 2021, marked by a relatively better economic context than that of 2020, investors closely followed the release of listed companies'operational results. 

The US employment data supports the dollar. The US dollar appreciated this week against all of its benchmarks, including the euro. The EUR/USD parity fell to 1.217 against 1.220 a week earlier.

The euro supported by positive economic data. The EUR/USD parity approached this week the level of 1.22 to 1.219, up 0.08% from last week.

On the sidelines of our last survey carried out among the 35 most influential investors in the Moroccan stock market, we have updated the required profitability towards stocks. Not surprisingly, the Equity Risk Premium reaches a record low of 5.6%, supported by the sustainable context of low interest rates in Morocco.

EUR/USD at its highest since early 2021. This week was marked by the rise of the euro against the dollar by + 0.34%, going from 1.214 to 1.218.

Dollar resists various negative US Data. At the end of this week, the euro fell slightly against the dollar, i.e. -0.21% from 1.217 to 1.214.

For this edition, we note a significant improvement in investor confidence toward the Equity market.

US jobs report penalizes the dollar. During this week, the dollar fell against the euro to its lowest level since the end of February 2021. In more details, the EUR/USD pair went from 1.20 to 1.22, i.e. a weekly evolution of +1.21 %.