Trade report 04/10/2013
ZAR outlook
USD/ZAR expected range: 9.9800 – 10.1000
The ZAR softened by nearly 1% to the USD on Thursday afternoon and this morning has managed to firm up slightly. It has not been able to capitalize on the US budget crisis as investors worry that an on-going government shut-down will put pressure on the global economy. At 08:51am the Rand was trading at R10.00/$. 0.3% up from its close in New York on Thursday.
Local news
South Africa’s on-going strike action and widening current account deficit continue to hold back the ZAR. Automotive parts workers have rejected the latest wage offer which means production of vehicles remains at a standstill. A spokesperson for BMW has been quoted as saying that the company will stop expansion in South Africa following disruptive strikes in the sector. Toyota, VW and Daimler have also been affected by the strikes.
International news
US payrolls data was due for release today which would normally be an indicator to the markets of what the FEDs decision will be regarding QE tapering. The on-going government shutdown means this release has been postponed which will likely mean a quiet end to what has been a volatile week in the markets.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA ILB auction (R800mn)
• 12:30 US Fed’s Fisher speaks
• 12:30 US Nonfarm payrolls (Postponed)
• 12:30 US Unemployment rate (Postponed)
• 13:15 US Fed’s Dudley speaks
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