The country might be winding down for the year with more than one eye on the holidays but the Rand enters arguably its busiest week of the year.
These are the mid rates as at 08:40 today:
USD = 13.64
AUD = 10.30
GBP = 18.30
NZD = 9.42
EUR = 16.08
Brent Crude = $63.17 per barrel
- We open the new week at R13.64 to the Dollar which is a decent improvement from R13.76 where we opened on Friday. But event risks come thick and fast this week so Rand volatility is guaranteed.
- Friday was an action packed day with significant local and international developments. On the local front Steinhoff headlines were stolen by the shock ruling that Jacob Zuma had acted recklessly in removing former NPA boss, Mxolisi Nxasana, followed by the appointment of Shaun Abrahams. The Rand responds favourably to any news that pulls Zuma closer to his day in court, and with Friday’s ruling that Ramaphosa must now choose the next NPA Head as Zuma is conflicted has seriously thrown the cat amongst the pigeons. Zuma and Abrahams have already indicated their intention to appeal but the full bench of judges handing down the ruling means that any appeal will be extremely difficult to push through.
- Internationally there was finally some progress on Brexit as an agreement was reached around the UK’s divorce bill (£39bn) as well as how to keep a soft boarder with Northern Ireland. Theresa May is confident that the EU will be open to post Brexit trade negotiations as early as this week, and we can expect the Pound to steadily track stronger against all currencies as further developments unfold.
- Zuma could suffer another blow this week as the High Court is set to rule on Thuli Madonsela’s recommendation that an inquiry into State Capture be set up with immediate effect by Judge President Mogoeng Mogoeng.
- This week is packed with local and international market data releases followed by the all important ANC elective conference this weekend. While today is quiet the rest of the week sees SARS tax collection update, manufacturing production, consumer inflation, unemployment, retail sales, trade balance and producer inflation – all from SA. From the US we have the FED interest rate announcement on Wednesday (a hike is all but guaranteed), various central banks announcing monetary policy and the ever present US tax cut saga.
- No local market data today and little from abroad.
- Possible USD mid rate trading ranges in the Rand today are R13.50 and R13.80.
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