Trade report 10/10/2013
ZAR outlook
USD/ZAR expected range: 9.92 – 10.0800
The ZAR has enjoyed a reprieve in the last few days. The USD has struggled during the government shutdown as US leaders failed to come to a budget agreement. However talk is beginning to circulate of a compromise between US Congressional leaders, which is helping the USD come back. The ZAR was at R9.9825/$ at 07:42 this morning, 0.2% down from its close in New York yesterday.
Local news
The Rand could come under more pressure today as mining and manufacturing production data is due to be released. The effect of the recent strikes may become a reality as manufacturing production is expected to have declined in August, which will add to negative investor sentiment.
International news
The USD is showing signs of recovery as President Obama invited Republicans to the White House to try and reach a compromise in the budget deadlock. Investors are hoping for a resolution by the end of the week, and if not the markets are expected to be very edgy next week as the date for the debt ceiling of 17th October approaches.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA Switch auction
• 09:30 SA Mining production y/y
• 11:00 SA Manufacturing production n.s.a y/y
• 11:00 GB BoE rate announcement
• 11:00 GB BoE asset purchase target (GBP)
• 12:30 US Initial jobless claims
• 12:30 US Import price index y/y (postponed)
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