Trade report 14/02/2014
ZAR outlook
USD/ZAR expected range: 10.9300 – 11.0800
Dollar weakness, not helped by soft US data released yesterday, has helped the ZAR stay steady this week, despite ongoing strike action and South Africa's wide fiscal and current account deficits. The Rand was trading at 11.0200/USD at 07:12GMT, 0.46% weaker than its close in New York on Thursday evening.
Local news
President Zuma delivered a very average “State of the Nation” speech yesterday thought to be full of empty promises and as such failed to make any impact on the markets. Meanwhile the countries wide current account and budget account deficits continue to weigh heavily on the local currency discouraging investors along with ongoing strike action and violent protests.
International news
The USD has been trading softer against its major peers, which has definitely helped emerging market currencies this week. With little key data due for release today it is thought today will be a quieter day in the markets and the ZAR will likely track fellow EM currency the Turkish Lira which posted a sizeable $65bn C/A deficit yesterday.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA ILB auction (R800mn)
• 07:00 DE GDP WDA y/y (preliminary)
• 10:00 EZ Trade balance (EUR) sa
• 10:00 EZ GDP sa q/q (advance)
• 13:30 US Import price index y/y
• 14:15 US Industrial production m/m
• 14:55 US Michigan consumer confidence (preliminary)
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