Posts tagged with 'money markets'

 

The rand takes the gap

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The rand was the 2nd best performing currency last week, taking advantage of a simmering trade war and China’s announcement of a stimulus package to boost its economy (tax cuts).

Last week’s gains demonstrated how volatile the rand is, and it wouldn’t take much for the local unit to reverse gains. The big news for the week is Friday’s US jobs data, with Tuesday’s SA trade balance and a host of local data releases providing insight into SA’s probable Q2 GDP.

We’ll also keep an eye on the European Central Bank’s monetary policy update, and of course any update on the Trade War front. Our Zim friends go to the polls today, in their first election without Uncle Bob; we wish our neighbours free and fair elections.

Latest Rates

USD/ZAR 13.2019
GBP/ZAR 17.3061
EUR/ZAR 15.3847
ZAR/JPY 8.4155
CNY/ZAR 1.9360
AUD/ZAR 9.7646
CHF/ZAR 13.2622
AED/
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Eskom in the red

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The rand fell by 1% against the majors yesterday as the ailing power utility Eskom suffered a 2.3 billion rand ($170 million) loss for the 2017/18 financial year.

Markets digested the state-owned entity’s gloomy picture as it punches a hole in the government’s balance sheet. The rand is on the back foot as investors try to shrug off trade uncertainty and Trump’s recent tweet on Iran.

On the data calendar today, the BRICS boys are in town for the 2018 summit with Finance minister Nene and Reserve Bank Governor Kganyago speaking later on. Also on the cards is EU and US manufacturing data. Have a lovely one.

Latest Rates

USD/ZAR 13.516
GBP/ZAR 17.687
EUR/ZAR 15.781
ZAR/JPY 8.253
CNY/ZAR 1.9821
AUD/ZAR 9.9663
CHF/ZAR 13.5938
AED/ZAR 3.6758
SGD/ZAR 9.8865
NOK/ZAR 1.645
EUR/USD 1.1668
GBP/USD
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Hawkish Powell boosts the dollar

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The rand lost momentum after US Fed Chair Jerome Powell took to the podium at his first congressional testimony yesterday.

The local unit opens at 13.27/$ after Powell spoke hawkishly regarding the US economy, raising expectations of further interest rate hikes during the course of 2018. Locally the rand also took a slight knock after Q2 consumer confidence dropped from record highs in the previous quarter, but the data still indicated that consumers are optimistic about the local economy.

On the data calendar today: local inflation and retail sales figures are released, with markets eagerly awaiting the SARB’s interest rate decision tomorrow.

Latest Rates

USD/ZAR 13.3207
GBP/ZAR 17.4367
EUR/ZAR 15.4941
ZAR/JPY 8.4887
CNY/ZAR 1.9853
AUD/ZAR 9.7924
CHF/ZAR 13.2854
AED/ZAR 3.6273
SGD/ZAR 9.7356
NOK/ZAR 1.6288Continue reading…

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Trade wars are hotting up

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The Trump Administration has released a $200bn hot list of Chinese goods to be hit with a 10% tariff ‘after a 2-month consultation period’.

This is not good news for emerging markets, and we are yet to hear what retaliatory measures China has up its sleeve. Speaking of Trump, the US President set off on his European adventure yesterday, where he’ll be meeting NATO leaders, British PM May and Russian President Putin (watch this space closely, or maybe just Twitter).

The rand is back over 13.40/$, and will struggle to claw back lost ground if there is no de-escalation in trade war rhetoric. Locally, struggling national carrier SAA announced that they had reached an agreement with the government to find an equity partner, which should lift the burden off state coffers. It’s England vs Croatia @ 20:00 tonight, enjoy!

Latest Rates

USD/ZAR 13.4381
GBP/ZAR 17.8350
EUR/ZAR 15.7703
ZAR/JPY
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Risk-on drives rand gains

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The rand ventured to 13.30/$ yesterday, as ‘risk-on’ sentiment drove emerging market gains (bets are for 1 more US Fed hike in 2018).

The local unit will continue to take its cue from global markets, with Thursday’s US inflation update the next big data release. Donald Trump look-alike Boris Johnson piled the pressure on UK Prime Minister Teresa May, joining the Brexit Minister and resigning in protest over her government’s ‘soft’ Brexit plans.

The Pound was weaker on the news, as uncertainty hit Downing Street. Back home, we have Eskom wage hikes to contend with, and of course the semi-final of the FIFA World Cup to look forward to, enjoy!

Latest Rates

USD/ZAR 13.3770
GBP/ZAR 17.7518
EUR/ZAR 15.7176
ZAR/JPY 8.2997
CNY/ZAR 2.0233
AUD/ZAR 9.9824
CHF/ZAR 13.4938
AED/ZAR 3.6443
SGD/ZAR 9.8794
NOK/ZAR 1.6742
EUR/USD 1.17
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Trade war – and the battle continues

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The US is set to implement additional tariffs on Chinese goods totalling $34 billion as of the 6th of July.

China has come out saying they are “fully prepared” for a trade war with the US, with little sign of an end to mounting tensions. As a result, global equity stocks closed weaker yesterday as fears over a trade war continue to do the rounds.

Don’t expect too much volatility today as US markets will be closed for Independence day. It quite possibly could be a holiday in England as well following the Poms narrow victory over Colombia last night!

Latest Rates

USD/ZAR 13.6254
GBP/ZAR 18.0072
EUR/ZAR 15.9064
ZAR/JPY 8.0986
CNY/ZAR 2.0628
AUD/ZAR 10.0942
CHF/ZAR 13.7488
AED/ZAR 3.7101
SGD/ZAR 10.0034
NOK/ZAR 1.6780
EUR/USD 1.1673
GBP/USD 1.3214
GBP/EUR 1.1320

All rates quoted are the interbank rates at time of publishing and shown for ind
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It’s still all about the US

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The local unit scored somewhat of a consolation goal on Friday (sorry Argentina fans), as global equities and EM markets ended the week stronger.

Eyes are still on the US though as June Fed minutes and job numbers will be out later this week. The data, coupled with escalating trade tensions between the US and China, could provide more volatility than the Spain vs. Russia penalty shootout.

On local shores, consumers are set to be hit with another sucker punch as the price of petrol is set to increase by 26c/litre. Combine this with higher municipal rates, taxes and electricity tariffs and you’ve got yourself an already overworked wallet. Have a great week and batten down the hatches if you’re in the Cape!

Latest Rates

USD/ZAR 13.83
GBP/ZAR 18.21
EUR/ZAR 16.09
ZAR/JPY 7.99
CNY/ZAR 2.07
AUD/ZAR 10.19
CHF/ZAR 13.95
AED/ZAR 3.76
SGD
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Rand creeps lower vs. EUR, USD and GBP

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While there’s been plenty of World Cup drama this week (mostly focused on VAR controversy) the rand has been having a less exciting few days.

But while ZAR hasn’t experienced a significant shift since the weekend, it has still edged lower against the US dollar, euro and pound.

Today’s high-profile US reports, including the nation’s trade balance and durable goods orders data, could have a modest impact on the rand, with upbeat data potentially undermining the emerging-market currency.

But we’ll also be looking ahead to tomorrow and the first South African data of the week. SA’s producer price index is expected to come in at 0.4% on the month and 4.3% on the year.

Latest Rates
USD/ZAR 13.54
GBP/ZAR 17.93
EUR/ZAR 15.80
ZAR/JPY 8.11
CNY/ZAR 2.05
AUD/ZAR 10.01
CHF/ZAR 13.67
AED/ZAR 3.68
SGD/ZAR 9.94
NOK/ZAR 1.
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Rand recovers from worst levels

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As we all unwound on Friday in readiness for the weekend, the rand staged a last minute recovery against the US dollar, euro and pound.

While high-impact data is in short supply at the start of this week, we all know it doesn’t take much to keep the currency market on its toes. The German IFO business confidence reports could have a modest impact on the EUR/ZAR exchange rate this morning, with improved sentiment potentially boosting the euro.

And there’s more confidence data on the cards tomorrow, this time from the US. Signs that consumers are in more upbeat frame of mind are generally good news for the US dollar, so the rand may start feeling the heat again if the report impresses.

Latest Rates

USD/ZAR 13.47
GBP/ZAR 17.86
EUR/ZAR 15.66
ZAR/JPY 8.06
CNY/ZAR 2.07
AUD/ZAR 10.00
CHF/ZAR 13.60
AED/ZAR 3.67
SGD/ZAR 9.92
NOK/ZAR
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ZAR extends losses against the US dollar

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The past few months certainly haven’t been kind to the rand, with the emerging-market currency tumbling 13.6% against the US dollar so far this quarter.

But it appears that the South African Reserve Bank (SARB) won’t be taking any sudden action to bolster the currency.

Yesterday SARB Deputy Governor Kuben Naidoo was quoted as saying: ‘If there is persistence in that currency weakness and it feeds into other prices, we would have to act. It’s not an immediate response, we will wait – because the economy is weak we can afford to wait and see. That may be a few months, maybe a few quarters’.

Today’s high-profile South African inflation report is the main news to focus on, with an unexpected result having the potential to spark yet more rand volatility.

Latest Rates

USD/ZAR 13.77
GBP/ZAR 18.10
EUR/ZAR 15.89
ZAR/JPY 8.01
CNY/ZAR 2.11
AUD/ZAR 10.11
CHF
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