Trade report 13/11/2013
ZAR outlook
USD/ZAR expected range: 10.2600 – 10.4100
The ZAR has managed to firm up this morning after dropping to an eleven week low yesterday as QE tapering speculation grew. By 06:35 GMT this morning the ZAR has reached R10.3355/$, up 0.3% from its close in New York yesterday evening. The Fed’s Lockhards and Kocherlakota comments came across rather dovishly yesterday evening which helped the ZAR steady against the USD.
Local news
Local Retail sales data is due for release today and is expected to reveal a slowdown from 3% y/y to 2.5% as consumers are struggling with debt and reluctant to take on additional credit. This may reinforce expectations that the SARB will be reluctant to increase interest rates, which leaves the ZAR exposed in the medium term due to its large current account and budget deficits.
International news
It is expected to be a relatively quiet day in the markets with further US data only due for release from tomorrow. Emerging currencies have managed to firm up in overnight trade as the Feds speakers hinted that an early taper would hurt the already slow economic recovery, although negative sentiment out of China has meant that the EMs gains have been limited.
TODAYS KEY DATA POINTS (GMT):
• 11:00 SA Retail sales constant y/y
• 09:30 GB ILO unemployment rate (3mths)
• 10:00 EZ Industrial production (wda) y/y
• 10:30 GB BoE releases Inflation Report
• 12:00 US MBA mortgage applications
• 13:45 US Fed’s Pianalto speaks
• 19:00 US Monthly budget statement
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