ZAR Forez Report

Should I stay or should I go? Another interesting week in the currency markets with all eyes on Brexit on Thursday. One can certainly expect to see some hostile swings in various currency pairs as this event draws nearer.
Although we only had a four day week with South Africans celebrating Youth Day on Thursday, there was still a reasonable amount of action which had a direct influence on the South African Markets.

All eyes were on South Africa’s current account figures. The figure was disappointing with our current account deficit widening to roughly 5% which was more than the market’s guestimate of 4.25%.

The data may lead to SARB raising Interest Rates again which is not ideal. This news caused the ZAR to depreciate and at one point we saw the ZAR trading at close to 15.50 to USD.

The Fed remained dovish last week which makes one think that only one rate hike will be seen this year if any. This news helped the ZAR.

There was some very sad news coming out of the UK on Thursday – the killing of Labour MP, Jo Cox. This caused a significant shift in momentum in the lead up to Brexit, with more voters moving towards remaining in Europe.

This week, everything has taken a back seat with everyone keeping a close eye on the Brexit vote on Thursday. At the moment the REMAIN camp are in the pound seats but it is very close to call. Looking at the bookies, a lot of the bets are for the “remain outcome” and seem convinced that there will be no exit. We need to brace ourselves for a volatile 48 hours.

The rand has rallied rather nicely against the USD this week and we are sitting at around 14.72. EUR/ZAR opened at 16.70 and GBP/ZAR at 17.71

This evening sees Yellen testify on the economic outlook of the US and recent policy actions but once again Brexit takes centre stage.

Once the Brexit results are out in the open, we can then look to the powers that be to make the more important monetary decisions.

And finally, a much needed Springbok win against the Irish!!!

Have a great week. Make it rain.

ZAR FOREX RATES
USDZAR = 14.6656
GBPZAR = 21.6150
EURZAR = 16.6300
AUDZAR = 10.9992
NZDZAR = 10.4834
CADZAR = 11.4859
CHFZAR = 15.2827

Do you want to receive news alerts via WhatsApp? Send us a WhatsApp message with your name and surname to 061 718 4438.

Please read our WhatsApp broadcast list disclaimer.
Join us on BBM at 59015786
Join the conversation on Facebook, Twitter and Instagram.