Monday, 21 October 2013

Rand maintains recent gains

Trade report 21/10/2013

ZAR outlook

USD/ZAR expected range: 9.6500 – 9.8500


The Rand remained steady over the week-end after the intense week in the markets and the question now is whether or not the ZAR can maintain this into the medium-term.  The ZAR was trading at R9.7800/$ at 06:32GMT, in line with the close of markets in New York on Friday evening.

Local news


This week see’s Finance Minister Pravin Gordhan presenting the budget policy statement and investors will be hoping to see progress in South Africa’s attempt to reduce its twin budget and current account deficits, although there is a likelihood that it will also flag some risks pertaining to SA.  Statistics SA are also due to release consumer inflation data although this is not likely to impact heavily on the ZAR.

International news

Economic data postponed due to US crisis over the past few weeks will most likely be released in the coming week although dates have not been set for all of them yet.  Nonfarm payrolls and housing data will be of key interest as investors watch for clues to the Feds forthcoming policy outlook with regards to QE tapering.

TODAYS KEY DATA POINTS (GMT):


•    14:00    US    Existing home sales
•    tbc    US    Wholesale sales m/m

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