Trade report 04/06/2013
The rand was weaker across the board at noon‚ giving up early gains ahead of the eagerly awaited release of South African trade data at 14:00 this afternoon. “Trade balance data could end the recent bout of rand short covering. Although the rand did enjoy some broad-based short covering on Thursday‚ it also benefited from a more risk-on global trading environment and associated weaker US dollar backdrop‚” wrote Absa Capital analysts in a note. The USD-ZAR is expected to trade at 9.90-10.500.
In international news, new steps to combat youth unemployment and help lending to struggling small business were agreed upon by European Union leaders on Thursday. Over the next two years 27 leaders have committed to spend €6bn to support job creation, and to use unspent EU budget funds to keep the efforts going thereafter.
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Friday, 28 June 2013
Thursday, 27 June 2013
ZAR underlying sentiment bearish
Trade report 04/06/2013
The rand was firmer in early trade on Thursday, supported by the short-term flows ahead of the end of the financial quarter, but traders said the underlying sentiment remained bearish. The highlights of the day for traders will be the May producer price inflation data and the results of the inflation expectation survey from the Bureau for Economic Research. The USD-ZAR is expected to trade at 10.00-10.20 today.
Whilst peaking at a FM top Companies awards function Reserve Bank governor Gill Marcus said on Tuesday that if the economic environment does not get any worse it will most likely still take a number of years before output gaps are fully closed and the world is back to normal growth. “The economic environment is a difficult one. The world is in its sixth year of crisis: a crisis that has repeatedly mutated‚ shifting its epicentre from a sub-prime crisis to systemic banking crisis; a liquidity‚ fiscal deficit and sovereign debt crisis,” said Marcus.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
The rand was firmer in early trade on Thursday, supported by the short-term flows ahead of the end of the financial quarter, but traders said the underlying sentiment remained bearish. The highlights of the day for traders will be the May producer price inflation data and the results of the inflation expectation survey from the Bureau for Economic Research. The USD-ZAR is expected to trade at 10.00-10.20 today.
Whilst peaking at a FM top Companies awards function Reserve Bank governor Gill Marcus said on Tuesday that if the economic environment does not get any worse it will most likely still take a number of years before output gaps are fully closed and the world is back to normal growth. “The economic environment is a difficult one. The world is in its sixth year of crisis: a crisis that has repeatedly mutated‚ shifting its epicentre from a sub-prime crisis to systemic banking crisis; a liquidity‚ fiscal deficit and sovereign debt crisis,” said Marcus.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Wednesday, 26 June 2013
ZAR weakness due to Mandela's health is overplayed
Trade report 26/06/2013
The threat of sustained ZAR weakness due to former President Nelson Mandela’s ill health is overplayed. Whilst Mr. Mandela is a global icon, he has not played a significant role in politics for over a decade. Whilst Mr. Mandela’s passing will be very sad when it occurs, sustained ZAR weakness would be unjustified. The fundamental justification for the ZAR vulnerability is however the massive imbalances that SA continues to have and the over-reliance on foreign investors and inflows to keep these imbalances financed. The USD-ZAR is expected to trade at 10.00-10.2500.
On Tuesday the Association of Mineworkers and Construction Union (Amcu) demanded a 100% pay increase for all unskilled and semi-skilled employees in the South African gold mining sector. The wage demand was enclosed in a detailed memorandum to the Chamber of Mines. The demand for a 100% wage increase is seen as a direct challenge to the 60% increase that rival union National Union of Mineworkers (NUM) demanded last month.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
The threat of sustained ZAR weakness due to former President Nelson Mandela’s ill health is overplayed. Whilst Mr. Mandela is a global icon, he has not played a significant role in politics for over a decade. Whilst Mr. Mandela’s passing will be very sad when it occurs, sustained ZAR weakness would be unjustified. The fundamental justification for the ZAR vulnerability is however the massive imbalances that SA continues to have and the over-reliance on foreign investors and inflows to keep these imbalances financed. The USD-ZAR is expected to trade at 10.00-10.2500.
On Tuesday the Association of Mineworkers and Construction Union (Amcu) demanded a 100% pay increase for all unskilled and semi-skilled employees in the South African gold mining sector. The wage demand was enclosed in a detailed memorandum to the Chamber of Mines. The demand for a 100% wage increase is seen as a direct challenge to the 60% increase that rival union National Union of Mineworkers (NUM) demanded last month.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Tuesday, 25 June 2013
Firmer rand
Trade report 25/06/2013
The rand was firmer at midday on Tuesday, having reached an intraday best level of R9.91 to the dollar, and was awaiting direction from the release of several sets of US economic data due later in the afternoon. "The rand is a price taker, caught in a spiral of reacting to global economic releases," a local trader said. The USD-ZAR is expected to trade at 9.95-10.1500.
In local news; "investment in skills development should be at the centre of our attempts to build a green economy," said Deputy President Kgalema Motlanthe said on Monday at a Green Economy National Youth Summit in Cape Town. He went on to say that; "all these efforts and initiatives should be aligned to prioritising localisation of energy products and services." Mr. Motlanthe said that focus areas for training and capacity building included energy auditing, manufacturing, installation, and maintenance.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
The rand was firmer at midday on Tuesday, having reached an intraday best level of R9.91 to the dollar, and was awaiting direction from the release of several sets of US economic data due later in the afternoon. "The rand is a price taker, caught in a spiral of reacting to global economic releases," a local trader said. The USD-ZAR is expected to trade at 9.95-10.1500.
In local news; "investment in skills development should be at the centre of our attempts to build a green economy," said Deputy President Kgalema Motlanthe said on Monday at a Green Economy National Youth Summit in Cape Town. He went on to say that; "all these efforts and initiatives should be aligned to prioritising localisation of energy products and services." Mr. Motlanthe said that focus areas for training and capacity building included energy auditing, manufacturing, installation, and maintenance.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Friday, 21 June 2013
Rand recovers slightly
Trade report 21/06/2013
The dependence of financial markets on the behavior of central banks became abundantly clear yesterday. We have known for some time that the accommodative stance of the central banks would cause distortions the financial markets, but the scale of these distortions are only now becoming clear. There is not much data scheduled for release today and could see some calm return. The USD-ZAR is expected to trade at10.15-10.3000.
In international news business surveys released on Thursday showed that the slump in the Eurozone private –sector eased more the expected in June, but a continued reduction in new orders indicates that a full recovery is not yet in the cards. Markit’s flash eurozone composite purchasing managers index (PMI), a reliable economic growth indicator for the bloc, rose to 48.9 in June from May’s 47.7.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
The dependence of financial markets on the behavior of central banks became abundantly clear yesterday. We have known for some time that the accommodative stance of the central banks would cause distortions the financial markets, but the scale of these distortions are only now becoming clear. There is not much data scheduled for release today and could see some calm return. The USD-ZAR is expected to trade at10.15-10.3000.
In international news business surveys released on Thursday showed that the slump in the Eurozone private –sector eased more the expected in June, but a continued reduction in new orders indicates that a full recovery is not yet in the cards. Markit’s flash eurozone composite purchasing managers index (PMI), a reliable economic growth indicator for the bloc, rose to 48.9 in June from May’s 47.7.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Thursday, 20 June 2013
Rand weakens as yields hit year high
Trade report 04/06/2013
The rand extended its overnight fall in early Thursday morning trade after the US Federal reserve beckoned an end to its stimulus programme, which has boosted appetite for high yielding emerging market currencies such as the rand. The rand was at R10.2455/$ at 08:41, 0.54% weaker than its New York close and a sharp drop from R9.91, its strongest level in Wednesday trade. The USD-ZAR is expected to trade at 10.15-10.3500.
The current account deficit narrowed to 5.8% of gross domestic profit (GDP) in the first quarter of this year down from the 6.5% of GDP in the fourth quarter of 2012. The Reserve Bank’s June quarterly bulletin released on Wednesday showed that the account deficit narrowed from R212.6bn to R190.9bn. A consensus done by BDlive forecasted for a deficit of 7% of GDP, thus the results were much better than expected.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Wednesday, 19 June 2013
Rand flat while awaiting account deficit data
Trade report 04/06/2013
ZAR outlook
As the market awaits current account and consumer inflation data due for release later today the rand was flat at around R10/$ in early Wednesday trade. The quarterly bulletin released by the South African Reserve Bank contains data on household consumption expenditure and fixed capital formation. The most anticipated‚ however‚ will be the current account deficit data‚ as it has implications for the rand.
In international news a bigger than expected drop in second-quarter earnings was posted by the worlds second largest fashion retailer, H&M. The drop in sales can be attributed to low consumer morale and bad weather in its main European market. The Swedish retailer said that although sales got off to a good start in June their inventory heading into the third quarter is bigger than was planned and the situation remains challenging in many of its major markets.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
ZAR outlook
As the market awaits current account and consumer inflation data due for release later today the rand was flat at around R10/$ in early Wednesday trade. The quarterly bulletin released by the South African Reserve Bank contains data on household consumption expenditure and fixed capital formation. The most anticipated‚ however‚ will be the current account deficit data‚ as it has implications for the rand.
In international news a bigger than expected drop in second-quarter earnings was posted by the worlds second largest fashion retailer, H&M. The drop in sales can be attributed to low consumer morale and bad weather in its main European market. The Swedish retailer said that although sales got off to a good start in June their inventory heading into the third quarter is bigger than was planned and the situation remains challenging in many of its major markets.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
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