Trade report 14/10/2013
ZAR outlook
USD/ZAR expected range: 9.8300 – 9.9600
Despite hints last week of a temporary resolution to the budget stalemate, negotiations are still ongoing, as Senate Majority Leader Reid has spoken of “productive conversation”. With the 17th October approaching investors would prefer more definite evidence of progress and it may be a tense week ahead for the markets. The ZAR is still trading in a narrow range and this morning was around R9.9250/$.
Local news
Local news remains overshadowed by the US budget impasse and debt ceiling issue. There are also few data releases this week to give the Rand direction which means that it will takes its clues from overseas markets, although the ZAR remains one of the riskier EM currencies. SA retail sales data is due out this week which should shed some light on domestic growth.
International news
Markets are quieter today as Japan and Hong Kong enjoy a public holiday and the US Treasury market is closed until tomorrow. The on-going US government shut down and debt ceiling issue have taken their toll on the USD. Many US data releases have also been indefinitely postponed and with the announcement of Janet Yellen as Head of the Federal Reserve Bank this hints towards a more QE supportive stance. Combined, these factors have shielded the EM currencies over the past few weeks.
TODAYS KEY DATA POINTS (GMT):
• US Market holiday – Columbus Day (Some exchanges open)
• JP Market holiday – Health Sports Day
• 01:30 CN CPI y/y
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