Trade report 17/03/2014
ZAR outlook
USD/ZAR expected range: 10.6100 – 10.7500
The ZAR finished off last week as one of the top EM performers with dollar weakness against the EUR helping the local currency. Another factor that helped the Rand was the smaller than anticipated current account balance as a percentage of GDP, although at more than 5% there is still much room for improvement. Despite last week’s performance the Rand dropped 0.2% this morning to R10.6900/USD by 06:30GMT, from its close in New York of R10.6900/USD on Friday evening.
Local news
Economists expect international sentiment to drive the markets this week, although there is also much data due for release locally. Feb CPI numbers and Jan retail sales data are due out on Wednesday with a slight increase expected for inflation, and a slowdown in retail sales. Meanwhile the platinum sector strike is entering its eighth week and while it has little impact on day-to-day trading, will more than likely affect growth data further down the line.
International news
Investors will be closely watching political tensions in Ukraine and Russia this week and the outcome of Sundays Crimea referendum and potential economic sanctions from the EU/US against Russia. Also in the news will be the FOMC decision after close of SA trade on Wednesday, with investors expecting another taper of $10bn, which will increase pressure on the ZAR and other emerging market currencies.
TODAYS KEY DATA POINTS (GMT):
• 10:00 EZ CPI y/y (final)
• 12:30 US Empire manufacturing
• 13:00 US Net long term TIC flows
• 13:15 US Industrial production m/m
• 13:15 US Manufacturing production m/m
• 14:00 US NAHB Housing market index
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