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New fears on the horizon

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China’s previously announced tariff on US products came into effect yesterday with more than 120 US products being affected.

The introduction of the 15% tariff could spark fresh fears of a trade war amongst global markets. On the topic of 15%, yesterday also saw the increase of VAT and with fuel levies set to be implemented tomorrow, consumers are set to be in the firing line.

It’s a quiet start to the week on the data front following the lengthy Easter weekend break. This weekend also saw the sad passing Winnie Madikizela-Mandela at the age of 81. Have a great week all.

Today’s Rate

USD/ZAR 11.8181
GBP/ZAR 16.6298
EUR/ZAR 14.5701
ZAR/JPY 8.9673
CNY/ZAR 1.8780
AUD/ZAR 9.1026
CHF/ZAR 12.3780
AED/ZAR 3.2180
SGD/ZAR 9.0165
NOK/ZAR 1.4984
EUR/USD 1.2332
GBP/USD 1.4078
GBP/EUR 1.1415

All rates quoted are the interbank rates at time of publishing and shown for indicative purposes only. It is importa
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The Trade War heats up …Tine to Take Cover?

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The rand is stronger this morning as the US and China Trade war heats up.

“The Donald” announced plans to slap certain Chinese imports with a 25% tariff, which was met with “fire and fury” and a 15% – 25% tariff on certain US imports by China. The US treasury dropped another “bomb” as they plan to restrict Chinese investments in certain US sectors.

Asian and US equities sank as hits to global growth are expected. Across the pond, the bank of England left interest rates unchanged, but hinted a future increase might be in play. SA awaits Moody’s credit rating decision later tonight with the rainbow nation in a great position to dodge the dreaded downgrade. Have a great day and an “Epic” weekend!

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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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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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