Trade report 07/03/2014
ZAR outlook
USD/ZAR expected range: 10.5400 – 10.7100
An upbeat EUR helped the ZAR strengthen yesterday and even reach 2 month highs of R10.5930/USD. The Rand was trading at R10.6180/USD at 06:45GMT this morning, only slightly weaker than its close in New York yesterday and holding steady before the release of the US payrolls data, thought to be the main driver in the markets today.
Local news
The Rand managed to shrug off the first of the load-shedding by Eskom yesterday, as it took direction from a firmer EUR. It remains to be seen whether this can be maintained though as these blackouts, previously only targeted at industrial users, will put pressure on an already fragile growth environment.
International news
News that the ECB has left interest rates unchanged, as Pres Draghi said that issues that had the Bank concerned last month were now mostly resolved, helped the EUR post gains against the USD. This in turn helped most EMs firm up against the USD. Today sees the release of the key US payrolls data which investors will be keenly awaiting, although Fed member Lockhart has stated that even a slightly disappointing reading will unlikely change the course of tapering.
TODAYS KEY DATA POINTS (GMT):
• 06:00 SA Net reserves (USD)
• 09:30 SA ILB auction (R800mn)
• 11:00 DE Industrial production wda y/y
• 13:30 US Trade balance (USD)
• 13:30 US Change in nonfarm payrolls
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