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Is there any more good news on it’s way with SARB meeting today?

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Local markets shift focus to the SARB’s MPC meeting today which could confirm a possible interest rate cut.

Speculation is that Governor Lesetja Kganyago could cut the interest rate by 25bps. Following Moody’s decision to change SA’s outlook to stable, it looks like that the SARB will follow up with some more positive news, this time for consumers with a “lil’ debt”.

Despite SA being a “small fish” Moody’s is said to start affirming our improved ratings. Globally: the US and China have agreed to negotiations to finalize a trade deal therefore minimizing a potential trade war. Have a great Wednesday!
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Resolute rand – The rand remains firm

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The rand remains firm and opens the day below 11.80/$, spurred on by pro-rand events which transpired yesterday.

SA’s January manufacturing output rose by 2.5%, supporting the expectation that the domestic economy is gaining momentum. US President Trump dropped an administrative bombshell as he dismissed the Secretary of State Rex Tillerson.
This triggered a dollar sell-off with Wall Street taking a knock.

Dollar weakness was cushioned by an acceleration in US inflation, this resulted in speculation that the Fed will raise rates at a gradual pace. Sterling soared to a 2 week high as UK Finance Minister Philip Hammond announced a polished fiscal policy update highlighting on economic growth forecast and the budget. On the data calendar today, ECB President Draghi takes to the podium and US retail figures will be released. Have a great day.

Today’s Rate

USD/ZAR 11.7851
GBP/ZAR 16.468
EUR/ZAR 14.6108
ZAR/JPY 9.055
CNY/ZAR 1
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Jobs data boosts the dollar

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The dollar rebounded late Friday on news of higher-than-expected US jobs growth in February.

Hourly wages moderated, easing inflation fears and concerns that the US Fed would hike interest rates 4 times this year.

An interesting week lies ahead on the data calendar, as Russia will be in the spotlight regarding the US trade policy; SA manufacturing, EU Q4 jobs data, UK fiscal policy update and US retail sales tomorrow; ECB president’s speech on Wednesday; SA local mining and as well as the Business Confidence Index on Thursday, and inflation figures out on Friday. Have a great week!

Today’s Rate

USD/ZAR 11.8224
GBP/ZAR 16.389
EUR/ZAR 14.5698
ZAR/JPY 9.04
CNY/ZAR 1.7891
AUD/ZAR 9.3041
CHF/ZAR 12.4591
AED/ZAR 3.2217
SGD/ZAR 8.9841
NOK/ZAR 1.5249
EUR/USD 1.2319
GBP/USD 1.38559
GBP/EUR 1.1248

All rates quoted are the interbank rates at time of publishing and shown for indicative purposes only. It
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Trade war fears ease

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The rand opens at 11.83/$ after emerging market currencies recovered overnight thanks to dollar weakness.

The greenback weakened after Pres. Trump’s plans to impose tariffs on steel/aluminium imports took a big blow, with Democrats and Republicans being opposed to the idea (meaning the plan probably won’t become policy and a global trade war less likely).

Markets will keep a close eye on SA Q4 GDP released at 11.30am this morning as this will have a big role to play in Moody’s credit rating decision on the 23rd of March. Expectation are for economic growth to have moderated to 1.7% from 2% in Q3. Have an awesome Tuesday!

Today’s Rate

USD/ZAR 11.8341
GBP/ZAR 16.3599
EUR/ZAR 14.6025
ZAR/JPY 8.9784
CNY/ZAR 1.8644
AUD/ZAR 9.1902
CHF/ZAR 12.5874
AED/ZAR 3.2223
SGD/ZAR 8.9707
NOK/ZAR 1.5127
EUR/USD 1.2338
GBP/USD 1.3827
GBP/EUR 1.1205

All rates quoted are the interbank rates at time of publishing
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SONA: Ticked, next-up: Budget – tick tock…

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By all accounts President Ramaphosa’s first address to the nation was a roaring success.

All eyes now shift to the 2018 Budget Speech set for Wednesday at 14:00. The rand’s reaction to SONA was muted, with markets waiting to see Wednesday’s balancing act. National Treasury’s focus will be on how to confront the ballooning budget deficit and government debt, amongst many other issues (with the short term goal being to avoid yet another credit rating downgrade).

A reaction from Moody’s is expected towards the end of the week with a significant USD/ZAR reaction anticipated (possibly in the rand’s favour). Have a great Monday!

Today’s Rate
USD/ZAR 11.6703
GBP/ZAR 16.3399
EUR/ZAR 14.4672
ZAR/JPY 9.137
CNY/ZAR 1.8385
AUD/ZAR 9.244
CHF/ZAR 12.5682
AED/ZAR 3.1808
SGD/ZAR 8.8955
NOK/ZAR 1.5009
EUR/USD 1.2399
GBP/USD 1.3998
GBP/EUR 1.1290

All rates quoted are the interbank rates at time of publishi
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SONA: Ticked, next-up: Budget – tick tock…

By all accounts President Ramaphosa’s first address to the nation was a roaring success.

All eyes now shift to the 2018 Budget Speech set for Wednesday at 14:00. The rand’s reaction to SONA was muted, with markets waiting to see Wednesday’s balancing act. National Treasury’s focus will be on how to confront the ballooning budget deficit and government debt, amongst many other issues (with the short term goal being to avoid yet another credit rating downgrade).
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Rand recovers as US Stocks whiplash

The rand broke below 12/$ overnight as US stocks clawed back more than half their losses seen Monday.

The Zuma saga continues as today’s ANC NEC meeting along with the State of the Nation Address was postponed in order to give more time for talks between Zuma and Ramaphosa (Indicating Zuma may have one foot out “the shower” door!).
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Rand slides on US inflation fears

The rand weakened overnight as a result of better than expect US Jobs numbers and wage growth released Friday, sparking fears of higher than expected US interest rate increases during 2018.

The US stock market lost 2.5% as investors cashed out to hold USD in anticipation of a Fed hike in March. The GBP/ZAR continues to flirt with the 17/£ level as a false break to 17.10/£ on Friday was given back on speculation over Zuma’s demise.
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Steinhoff implosion staggers SA

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The collapse of Steinhoff International’s share price this week, following allegations of accounting fraud, is being described as the biggest corporate failure on the JSE so far, but it may just be the tip of the iceberg. On Thursday afternoon, Finance Minister Malusi Gigaba said he supported a decision by the Financial Services Board (FSB)..
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Treasury senior official calls it quits as Zuma takeover looms

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Michael Sachs, the head of the budgeting office at the national treasury, has reportedly resigned because of interference in its budgeting process by the presidency. The Business Day newspaper reported on Monday morning that “a joint team from the treasury and the Office of the president” are searching for R40-billion in expenditure cuts from the..
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