Trade report 12/02/2014
ZAR outlook
USD/ZAR expected range: 10.9000 – 11.0500
The ZAR has managed to hold onto its recent against against the USD and even remain below the key R11.00/USD level, after trade data out of China and encouraging local data was released. The Rand was trading at R10.9650/USD at 06:51GMT, very close to its close in New York on Tuesday evening. It was the best performing EM currency yesterday at +1.6% vs. the USD.
Local news
Local data released yesterday revealed that the unemployment rate has slowed to 24.1% in Q4 from 24.5% and that manufacturing growth has improved to 2.5% y/y. While these figures are hardly reason to celebrate, the figures are encouraging and along with the trade surplus out of China, have allowed the Rand to hold steady below the R11.00/USD level for the moment.
International news
Chinese trade data has come in firmly on the topside with both import and export growth which has helped the ZAR firm up as well as most emerging markets. Janet Yellens testimony came across in a dovish tone yesterday as she noted that the recovery in the US jobs market is “far from complete”. She did however hint that the Fed taper is likely to continue to taper. Despite this EM markets generally performed well with most ending stronger on the day.
TODAYS KEY DATA POINTS (GMT):
• 11:00 SA Retail sales constant y/y
• 10:00 EZ Industrial production wda y/y
• 10:30 GB BoE releases Inflation Report
• 11:15 EZ ECB’s Praet speaks
• 12:00 US MBA mortgage applications
• 13:45 US Fed’s Bullard speaks
• 15:30 EZ ECB Pres. Draghi 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