Trade report 08/01/2014
ZAR outlook
USD/ZAR expected range: 10.5300 – 10.7100
After the past few volatile weeks and then falling to a 5 year low earlier in the week of R10.7360/USD, the Rand has managed to steady slightly after the news that local foreign exchange reserves data came in stronger than expected. At 07:03GMT this morning the ZAR was at R10.6250/USD, 0.2% up from its overnight close in New York.
Local news
Reserve bank data released this morning has revealed that South Africa’s net gold and foreign exchange reserves have risen to $45.479bn in December from $45.43bn in November. Gross reserves have also increased to $49.587bn in December from $49.348bn in November. This data has helped the ZAR steady out slightly against the USD today, but unfortunately the gaping current account deficit continues to discourage investors.
International news
The US trade deficit declined to a 4 year low in November which has many financial institutions expecting a stronger than initially expected Q4 GDP print. This in turn has had some banks revise their growth forecasts upwards which has helped the USD strengthen. Investors will now be keenly awaiting the release of the FOMC minutes from the final meeting of 2013 which may shed light on the much speculated upon, reduction in Fed stimulus over the year ahead.
TODAYS KEY DATA POINTS (GMT):
• 06:00 SA Net reserves (USD)
• 07:00 DE Current account (EUR)
• 10:00 EZ Retail sales y/y
• 10:00 EZ Unemployment rate
• 11:00 DE Factory orders y/y
• 13:15 US ADP employment change
• 19:00 US Fed releases 17-18 Dec FOMC minutes
• 20:00 US Consumer credit
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