ZAR outlook
USD/ZAR expected range: 9.75
– 9.90
The Rand has become more range bound
against the USD. An expected range of 9.80 – 9.90. A breakout in any direction
to cause further movement. The Rand breached the 10 mark last week but the
selling could not be sustained, which has placed a strengthening bias on the
Rand.
The Rand has lost some of its shine as a carry-over trade
destination, as other high yielding currencies having outperformed the Rand.
The Rand will need to sustain a break below the technical resistance level of
9.78 for further appreciation to occur. With important local data being
released on Thursday, we should be able to find some direction depending on the
news.
The RBA cut rates to a record low of 2.5%, this caused the market to
be slightly more risk-positive, this in turn would have assisted the higher
yielding emerging market currencies such as the Rand. The Eurozone released
data that was all better than expected, this is in line as the ECB having
recently been releasing less negative
view in the policy meetings.
TODAYS KEY DATA POINTS:
7am+: SA earnings (NED, RES, MRF, TRE), Europe
earnings (Merck, Munich Re, etc)
10.30am: UK June Ind Prod (+0.7% m/m) 12pm: Germany June Factory Orders (+1% m/m)
1pm+: Molson Coors (140c)
Foreign exchange South Africa– Let one of our professional
consultants at Currency Solutions assist you. To know more about how we can
help you Contact Us.
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