Trade report 04/02/2014
ZAR outlook
USD/ZAR expected range: 11.1600 – 11.3100
The ZAR managed to remain steady and even firm up slightly yesterday, after reaching 5 year lows during last week’s volatility. The Rand was up 0.3% from yesterdays close, by 06:22GMT trading at R11.2400/USD. The question now is whether the currency can hold onto these gains with both local and key international data such as US non-farm payrolls due for release this week.
Local news
The emerging market sell off last week put strain on the local currency, and the markets viewed the surprising interest rate hike as insufficient. Investors will be watching to see if the SARB continues with its interest rate hike trend, although with SA experiencing weak growth this is most likely not what the SARB will want to do. In other news AMCU resumed talks this morning with platinum producers in a hope to reach a deal and end the strike which is costing the country an estimated R400m per day.
International news
PMI data from China came in disappointingly, which confirms the Asian giant is experiencing a growth slowdown. This is not good news for emerging markets, such as South Africa, that are heavily reliant on trade exports to the country. Meanwhile the GBP softened against its most traded peers after PMI data revealed an unexpected slowdown in the UK manufacturing sector. Encouraging EZ PMI data, including a return to growth for Greece, helped the EUR gain against the GBP and the USD.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA Bond auction (R2030 – 1bn; R209 – 800mn; R214 – 550mn)
• 09:30 SA SACCI business confidence
• 11:00 SA Solidarity/ETM Labour Market Index
• 09:30 GB PMI construction
• 10:00 EZ PPI y/y
• 14:45 US ISM New York PMI
• 15:00 US Factory Orders
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