Friday, 3 May 2013

Rand to consolidate at stronger levels

Trade report 01/05/2013

A number of factors should see the ZAR consolidate at stronger levels, ranging from the decision of the European Central Bank to cut interest rates yesterday, the small improvement in commodity prices and the slight weakening in the JPY.

The platinum market is expected to have a "marginal surplus" this year after slipping into a deficit in 2012 for the first time in eight years because of strike action in South Africa. SA is the world’s largest producer of platinum used in jewellery and industrial applications.

Thursday saw European Central Bank (ECB) cut main interest rates. Not all bank officials were positive about the decision and highlighted the constraints to further action. The ECB lowered its main refinancing rate by a quarter percentage point to 0.50 per cent.

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