ZAR Forex Report – All quiet on the Western front

It has been a fairly slow week, given the Easter holidays. Nonetheless, the Rand strengthened last week Thursday – helped mostly by comments from US President Trump.

The ZAR gained as much as 40 cents on Wednesday, strengthening by 2.7% to close at 13.42.

President Trump commented that he prefers low interest rates and that the USD gained too much, too fast and that it is currently too strong – this caused the Dollar to weaken and emerging markets to strengthen. EM markets were further helped along by good Chinese trade data.

The Rand has now gained over 50 cents; or a third of its losses following the cabinet reshuffle.

Trade on Monday was very light, however further Dollar weakness helped the Rand strengthen to 13.27. One cannot help but wonder where the ZAR would have been trading, had there not been a cabinet reshuffle…

While there are all sorts of comments from political leaders, both good and bad, there has been little news, and as such less risk.

The Rand and other emerging markets are currently more affected by global issues such as the French elections where it is a neck and neck race.

British PM Theresa May’s call on a snap election has helped the GBP strengthen, but it adds to global uncertainty.

With another shorter week, we expect the Rand to remain range bound – with global uncertainty and risk aversion, we can expect pressure to remain on emerging markets. Keep an eye out for both local and Euro inflation data today.

ZAR FOREX RATE

USDZAR  =  13.3216
GBPZAR  = ​​​ ​​​17.0758
EURZAR  = ​​​ ​​​14.2676
AUDZAR  =  10.0088
NZDZAR  = ​​​ ​​​9.34119
CADZAR  = ​​​ ​​​9.92453
CHFZAR  =  13.3621