Trade report 29/01/2014
ZAR outlook
USD/ZAR expected range: 10.8400 – 11.0200
The ZAR managed to firm up late yesterday and started off this morning below the key level of R11.00/USD to R10.9530 at 06:43GMT this morning but in the later part of the session started slipping again and dropped to around R11.1900/USD. This comes just before the scheduled interest rate announcement by the SARB and after Turkey announced an aggressive interest rate hike last night.
Local news
General feeling in the markets has been that Reserve Bank Governor Gill Marcus would leave interest rates unchanged, but analysts are now not so certain after Turkey announced an aggressive interest rate hike last night. The reasoning is that after many rate hikes by other EM economies the SA economy will be left behind if they do not follow suit and investors will be attracted to other economies.
International news
The main focus on the international front will be the FOMC meeting and the announcement which follows at 19:00GMT. There has been question over whether the taper will go ahead especially after major losses in emerging market assets but general feeling is that the Fed will go ahead with a taper of another $10bn. which would put pressure on an already struggling ZAR.
TODAYS KEY DATA POINTS (GMT):
• 13:00 SA SARB rate announcement
• 07:00 GB Nationwide house prices nsa y/y
• 07:00 DE GfK consumer confidence
• 09:00 EZ M3 money supply sa y/y
• 09:00 EZ European Commission releases review of Spain’s banks
• 12:00 US MBA mortgage applications
• 19:00 US FOMC rate and policy decision
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