Trade report 16/10/2013
ZAR outlook
USD/ZAR expected range: 9.9000 – 10.0600
Contrary to speculation that a resolution of the US budget crisis was imminent, talks between politicians broke down yesterday. The lack of a plan to avoid a US default has investors nervous and has put pressure back on the USD after it strengthened slightly yesterday. The ZAR was trading 0.3% up this morning at R9.9520/$.
Local news
The threat of a US default continues to drive the markets, which means local news is overshadowed at the moment. It is worth noting however that domestic retail sales data is due out today and economists expect growth to have slowed to 1.2% y/y from 2.8% in July as consumer’s battle rising prices and rising debt. NUMSA and RMI have also reached an agreement bringing an end to the automotive sector strike.
International news
Investors are nervous of a US default which is reflected in the markets as trading volumes are low. Fitch has put the US credit rating on negative watch which is indicative of the “urgency with which Congress should act” to reduce default risk. EM currencies are expected to trade in a narrow range until the US politicians have come to an agreement, the government reopens and the debt ceiling crisis is over.
TODAYS KEY DATA POINTS (GMT):
• 11:00 SA Retail sales constant y/y
• 08:30 GB ILO unemployment rate (3mths)
• 11:00 US MBA mortgage applications
• 14:00 US NAHB Housing market index
• 18:00 US Fed releases Beige Book
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