Trade report 09/09/2013
ZAR outlook
USD/ZAR expected range: 9.9600 – 10.1100
The ZAR finished off the week well as it surged to a 3 week high against the USD. This was mostly due to US data that came in softer than expected and the welcome news that the gold strike was over after unions and gold producers came to an agreement over wages. The ZAR was trading slightly softer this morning dropping to 10.0305 but still stronger than the lows of the last few weeks.
Local news
Locally, domestic events threaten to undermine the gains made by the ZAR in the last few days. The ever-present threat of strikes is likely to keep investors wary as petrol station workers and car dealership workers plan to strike from Monday. Economists are nervous of a widening of the current account when the SARB releases its second quarter bulletin on Tuesday, which will also put pressure on the Rand.
International news
News that the US job numbers came in below expectations helped the ZARs recovery on Friday. This casts doubt over when the FED will likely introduce QE tapering which helped boost the EM currencies. Important US retail sales data due out later in the week should give a better indication on when the much talked about QE tapering will actually begin.
TODAYS KEY DATA POINTS (GMT):
• 15:00 US Fed’s Williams speaks at NABE
• 19:00 US Consumer credit (USD)
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
Want to know where the markets are? View our Live Currency Rates
No comments:
Post a Comment