http://www.fxpro.co.zaZAR Weekly CommentaryCopyright 2002 - 2009 fxpro.co.za. All rights reserved.http://www.fxpro.co.zaAhead of the Jackson Hole economic symposium on Friday, emerging market jitters became a little more pronounced as investors feared another bout of risk aversion as policy makers highlighted the risks for growth in the foreseeable future. The response to indications of further quantitative easing efforts should they be required was looked on far more positively this time around. Whether the more positive sentiment is sustained over the longer term is up for debate given that the markets are generally rewarding fiscal prudence rather than fiscal expansion. Nevertheless, US Treasuries sold off on Friday following some of Bernanke's comments and the reality is that this might be seen as a trigger for a relief rally in stock markets and a general improvement in sentiment towards emerging markets. Given that the ZAR has held up well despite a general rotation back to safety, this response by global stock markets could be exactly what is required to help the ZAR start the week on a much firmer footing. According to Reuters data (bid chart), the ZAR weakened against the USD on Friday, closing at R7.2952 from R7.2625 on Thursday. The ZAR also lost ground vs. the EUR and GBP, ending at R9.3101 vs. the EUR from R9.2722 on Thursday, while finishing at R11.3222 vs. the GBP from R11.3214 the previous day.http://www.fxpro.co.za/DailyBulletin.aspx8/30/2010 3:04:34 PM