Monday, 25 November 2013

Rand hopes for a positive week

Trade report 25/11/2013

ZAR outlook

USD/ZAR expected range: 10.0200 – 10.1500


The ZAR managed to close off last week relatively steady against the USD after rather hawkish comments from the SARB which helped investor sentiment.  This morning the Rand was trading at R10.0975/$ at 08:47, only slightly off Fridays close in New York.  “Bullish global markets and a relatively empty international data calendar suggest this could be a positive week for the rand”, commented an analyst.

Local news

Last week Eskom, which provides 95% of South Africa’s electricity declared an emergency which knocked investor sentiment.  But news that Eskom has lifted this emergency has helped the Rand get back on track.  The SARB's hints that an interest rate hike is on the cards has also helped take the edge of the ZAR's recent underperformance.

International news

Talk of a EUR rebound has supported the Rand over the past day or so although the Fed taper remains the primary driver in the markets. But with little international data due for release this week, the taper speculation is unlikely to cause much volatility in the markets.

TODAYS KEY DATA POINTS (GMT):


•    00:15    EZ    ECB’s Coeure speaks
•    15:00    US    Pending home sales y/y
•    15:30    US    Dallas Fed manufacturing activity
•    21:15    EZ    ECB’s Weidmann speaks at Harvard

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