Tuesday, 21 January 2014

Rand steady ahead of strike action

Trade report 21/01/2014

ZAR outlook

USD/ZAR expected range: 10.7800 – 10.9200


Yesterday was a fairly quiet day in the markets owing mainly to the public holiday in the US and the fact that there was no real key economic data to speak of.  The Rand has managed to remain steady in the last few sessions and slowly retreat from its recent 5 year low levels.  The ZAR was trading at R10.8500/USD at 06:47 GMT this morning, very close to its R10.8295 close in New York yesterday evening.

Local news


The ZAR managed to perform well yesterday compared to its EMEA peers mainly due to the rally in gold and platinum prices.  This, despite the news that members of the Association of Mineworkers and Construction Union served platinum and gold mines with 48 hour strike notices yesterday.  All eyes this week will be on the unfolding strike news in the hope that they can be averted.

International news

Trading volumes should increase today after yesterday’s US public holiday but with very little key data due for release until Wed and Thursday the next few sessions will most likely mean calm consolidation for most EM currencies.  Meanwhile the GBP has lost recent gains on the EUR as data released today show a drop in UK business confidence, although tomorrows UK employment figures will be much more influential.

TODAYS KEY DATA POINTS (GMT):


•    07:00    SA    Leading indicator
•    09:30    SA    Bond auction (R2030 – 550mn; R2037 – 1bn; R2048 – 800mn)
•                EZ    German Constitutional Court ruling on OMT
•    10:00    DE    ZEW economic sentiment
•    10:00    EZ    ZEW economic sentiment
•    14:30    US    IMF releases World Economic Outlook revisions

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