currency market

 

Local economy showing positive signs

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The rand is taking full advantage of the weaker dollar as it opens at 11.83/$ this morning.

Investors returned to buying emerging market currencies (as opposed to the USD) after Trump’s top economic advisor, Gary Cohn, announced his resignation yesterday. To add to dollar losses, North Korea have reportedly ended nuclear weapons testing for the time being (following positive talks with South Korea).

Local Q4 GDP figures released yesterday supported rand gains, as economic growth increased by 3.1% in the final quarter of 2017, with an overall growth of 1.3% for the year. Today’s highlights: The US Fed’s Beige Book and EUR Q4 GDP figures are released. Happy hump day!

Today’s Rate

USD/ZAR 11.8145
GBP/ZAR 16.4149
EUR/ZAR 14.6800
ZAR/JPY 8.9432
CNY/ZAR 1.8683
AUD/ZAR 9.2208
CHF/ZAR 12.6035
AED/ZAR 3.2170
SGD/ZAR 8.9792
NOK/ZAR 1.5161
EUR/USD 1.2422
GBP/USD 1.3888
GBP/EUR 1.1182

All rates quoted a
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Forget the bark, Powell bites!

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US Fed chair Jerome Powell’s hawkish (very positive) testimony yesterday has sent the greenback on a mini-rally.

The dollar gained more than 1% against the majors as Powell expressed optimism that the US economy remains strong. Indications are that rates will continue to be hiked gradually, resulting in speculation that could see four hikes this year (unless the Donald has anything to say about that) with an additional two in 2019.

On the calendar today, SA trade balance (14h00) and US GDP figures (15h00) will be the highlights.

Today’s Rate

USD/ZAR 11.7261
GBP/ZAR 16.2916
EUR/ZAR 14.3365
ZAR/JPY 9.1345
CNY/ZAR 1.8529
AUD/ZAR 9.1419
CHF/ZAR 12.4811
AED/ZAR 3.1926
SGD/ZAR 8.8502
NOK/ZAR 1.4882
EUR/USD 1.2235
GBP/USD 1.3908
GBP/EUR 1.1367

All rates quoted are the interbank rates at time of publishing and shown for indicative purposes only. It is important to note that foreign exchange rates fluctu
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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 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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