ZAR Forex Report – from Trump’s lips to tulips

Market confidence was boosted by Chinese trade statistics last week, which showed a jump in imports.

Strong USD data however, has started to apply pressure on the Rand and other emerging markets. The Rand pushed through 13.15 on Wednesday, touching 13.19. It is a near certainty that the Fed will increase rates this week, adding to the Dollar strength.

Friday morning, trade opened with the Rand slightly stronger after spiking in Asian trade to 13.37 and 16.27 against the USD and GBP respectively.

With the EUR also slightly weaker, EURZAR was trading at 14.10 as it awaited the US non-farm payrolls.

Strong US payrolls caused the Rand to have a slight wobble, however it was standing firm against most currencies – especially given that a US rate hike is almost completely priced into the Dollar.

On Monday, the ZAR opened at 13.15 and 16.00 against the USD and GBP and at 14.05 against a strengthening Euro.

All markets have their eyes firmly set on Wednesday as the Dutch head to the polls in an increasingly volatile political situation and the US Fed meets to discuss the interest rate.

Chinese data released early on Tuesday showed their economy is growing at the beginning of 2017. This eased some pressure caused by rumours of another Scottish referendum, while a parliamentary vote has cleared the path for British PM Theresa May to trigger Article 50, sending the Pound tumbling. Adding to global risk is an intensifying political situation between the Netherlands and Turkey.

There is lots to look out for this week, so expect trade to remain volatile.

Tomorrow we have the double whammy of US inflation and the Fed rate decision as well as Dutch elections. Also BoJ and BoE policy decisions on Thursday, along with Trump’s budget and the UK triggering Brexit – both which are expected to happen this week.

ZAR FOREX RATES

USDZAR  =  13.1839

GBPZAR  =  15.9851

EURZAR  =  14.0269

AUDZAR  =  9.96020

NZDZAR  =  9.10410

CADZAR  =  9.79478

CHFZAR  =  13.0763

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