Tuesday 18 March 2014

Rand range-bound after yesterdays dip

Trade report 18/03/2014

ZAR outlook


USD/ZAR expected range: 10.7000 – 10.8400

The ZAR dipped slightly yesterday morning as the market looked forward to a week full of international and local data.  Its trade was mostly range bound for the rest of the day yesterday, and has been most of the morning today, trading around the R10.7380/USD level.

Local news

The Rand seems to be holding well at the moment especially considering the on-going platinum strike which is now into its eighth week, the first of the Eskom electricity blackouts last week as well as the political tension in the Ukraine.  Investors will be hoping for positive inflation data for February and retail sales data from January, both due for release this week, to keep the Rand supported.

International news

There is a string of US data due for release this week, but the main risk to emerging markets will be the release of the FOMC decision tomorrow and any increased tension in the Ukraine.  Meanwhile the EUR remains firmer against the GBP today despite poor investor confidence out of Germany, the Eurozones largest economy.

TODAYS KEY DATA POINTS (GMT):

• 09:30 SA Non-farm payrolls y/y
• 10:00 DE ZEW economic sentiment
• 10:00 EZ ZEW economic sentiment
• 11:00 RU Russian president Putin speaks
• 12:30 US Housing Starts
• 12:30 US Building permits
• 12:30 US CPI y/y


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