Global news and risk has been relatively quiet over the last week with economic data proving to have little effect.
Last week’s Moody’s report showed, as was expected, that SA’s low growth remains a concern.
Our debt to GDP ratio is also spiralling out of control as many SOE’s keep borrowing funds to stay alive.
ZAR opened on both Tuesday and Wednesday at 13.31 against the USD.
News from the US is that President Trump has halted the business councils and links between corporate America and the Oval Office.
This, along with the Fed’s outlook that they are in no rush to hike interest rates, helped the USD to weaken slightly as the ZAR opened at 13.17 on Thursday morning.
Rand gains were reversed on Friday morning after the horrific terrorist attack in Las Ramblas, Barcelona. The Rand opened at 13.26 against the USD and 15.55 and 17.09 against EUR and GBP respectively after the attack as it created nervousness in the markets.
ECB minutes showed that members are slightly worried that the Euro is strengthening too much against the USD.
At the start of the week there were few local and global events providing direction, so we turn our attention to the Jackson Hole symposium which starts on Thursday evening and will include speeches by both Yellen and Draghi.
The Rand opened this week at 13.18 against the USD and we expect it to trade range bound due to lack of significant economic data. Local CPI figures are out on Wednesday.
Currently, the Rand is trading around 13.22 against the USD.
ZAR FOREX RATE
USDZAR = 13.2248
GBPZAR = 16.9818
EURZAR = 15.5484
AUDZAR = 10.4531
NZDZAR = 9.63335
CADZAR = 10.5042
CHFZAR = 13.6912
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