Trade report 20/09/2013
ZAR outlook
USD/ZAR expected range: 9.6200 – 9.7800
The ZAR has pulled back slightly against the USD after the initial over-reaction to the FEDs surprise announcement on Wednesday that it was maintaining QE at the current levels for the meantime. At 08:47 this morning the ZAR was trading at 9.7010 to the USD, slightly softer than its close in New York on Thursday evening.
Local news
The good news for consumers is that the SARB has kept interest rates unchanged as was predicted. This is not necessarily good for the strength of the Rand however, as this loose monetary policy leaves the ZAR more exposed to external fluctuations in sentiment than its EM peers that have already tightened their monetary policies.
International news
The recent FOMC meeting is barely over and talk has already started about the next scheduled meeting in December and the decision over QE. Reserve Bank Governor Gill Marcus has cautioned that volatility linked to uncertainty around the Feds eventual tapering will keep emerging market currencies such as the Rand under pressure.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA ILB Auction
• 08:30 GB Public sector net borrowing
• 16:30 US Feds George speaks
• 16:55 US Feds Bullard speaks
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