Trade report 22/01/2014
ZAR outlook
USD/ZAR expected range: 10.7700 – 10.9100
The ZAR managed to hold steady most of yesterday, but this morning has weakened again as the threat of strike action intensifies and investors tread cautiously ahead of inflation data due for release today. The Rand was trading at R10.8500/USD at 06:43 GMT this morning, down 0.25% from its R10.8240 in New York yesterday evening.
Local news
Surprisingly, the Rand was the best performing EM currency yesterday. One of the reasons for this may be talk over the Telkom deal with a Southeast Asian company, which would be good news for the local currency. The government meanwhile is promising to facilitate talks today to try avert the imminent strike action, which will damage economic growth should they go ahead as planned.
International news
There has been little news in the form of international data releases. Investors will be keenly awaiting the next set of key US data as this will give a good indication of whether there will be additional tapering at the next FOMC meeting. Meanwhile, the GBP has made gains on the EUR as UK unemployment figures released this morning, have come in better than anticipated.
TODAYS KEY DATA POINTS (GMT):
• 08:00 SA CPI y/y
• JP BoJ rate and policy decision
• JP BoJ policy statement
• 09:30 GB ILO unemployment rate (3 mths)
• 09:30 GB BoE releases MPC minutes
• 12:00 US MBA mortgage applications
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