Trade report 09/12/2013
ZAR outlook
USD/ZAR expected range: 10.2500 – 10.4000
Last week’s strong US data releases had the ZAR firmly on the backfoot as it dropped to 5 year lows of over R10.505/$. The Rand rallied in the last hour or two of Friday’s trade and closed at R10.3200. This morning the ZAR has been holding more or less steady but it faces a tough week ahead with more data releases and comments from numerous Fed members scheduled.
Local news
News over the week-end has been dominated by stories about Nelson Mandela’s passing and his coming funeral. The Rand has shown very little reaction to his passing and it is worth noting that there has been very little negative press around the issue and South Africa’s future. Investors will now be waiting for the next set of local data to be released this week which includes manufacturing and mining production for October, consumer and producer price inflation for November and retail sales data for October.
International news
Emerging market currencies all took strain on Friday when the US payrolls numbers came out better than anticipated and the fear of the Fed taper took hold. But within the hour there was a general EM rebound. The risks still remain for the EM currencies and we may see further volatility this week as various Fed members are due to speak, but for now the tapering may be priced in which reduces the threat of a run on the Rand.
TODAYS KEY DATA POINTS (GMT):
• 07:00 DE Trade balance (EUR)
• 08:15 EZ ECB’s Mersch speaks
• 09:30 EZ Sentix investor confidence index
• 11:00 DE Industrial production wda y/y
• 17:30 US Fed’s Lacker speaks
• 18:05 US Fed’s Bullard speaks
• 19:15 US Fed’s Fisher speaks
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