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MTBS tomorrow could give the Rand direction in the short term
Tale of Two halves
The day started off with EM markets under pressure, with the Rand and other EM currencies firmly on the back foot, with the after-shocks from yesterday still firmly in the market. The Rand pushed the R18.50 level in midday trading and looked odds-on to trade above the R18.50 level. However, in late afternoon trade, we have seen the Pound on the charge after the announcement of the new British PM. The Pound is currently trading at 1.1465 against the US dollar. We have also seen a flood of "risk-on" trading, with the US dollar pushing above the 0.99 level against the Euro. This all meant that the Rand is currently trading at R18.20, a 30-cent move in a matter of an hour. The key is whether this move is sustainable or is a swift turnaround upon us like earlier in the week.
MTBS tomorrow could give the Rand direction in the short term
Tomorrow we have the Mid-Terms Budget speech, which could give the Rand some momentum. The movement in the Rand will be mostly based on the perception of the speech, with a speech that is perceived as good by the market causing the Rand to strengthen and vice versa. We expect the Rand to hold onto the recent R18.00/50 range, but with some volatility in this range, especially with no data or news out of the US. Expect the Rand to test the range in the following weeks when the US data sets are set to hog the headlines.
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By Markets Update with TreasuryONETale of Two halves
The day started off with EM markets under pressure, with the Rand and other EM currencies firmly on the back foot, with the after-shocks from yesterday still firmly in the market. The Rand pushed the R18.50 level in midday trading and looked odds-on to trade above the R18.50 level. However, in late afternoon trade, we have seen the Pound on the charge after the announcement of the new British PM. The Pound is currently trading at 1.1465 against the US dollar. We have also seen a flood of "risk-on" trading, with the US dollar pushing above the 0.99 level against the Euro. This all meant that the Rand is currently trading at R18.20, a 30-cent move in a matter of an hour. The key is whether this move is sustainable or is a swift turnaround upon us like earlier in the week.
MTBS tomorrow could give the Rand direction in the short term
Tomorrow we have the Mid-Terms Budget speech, which could give the Rand some momentum. The movement in the Rand will be mostly based on the perception of the speech, with a speech that is perceived as good by the market causing the Rand to strengthen and vice versa. We expect the Rand to hold onto the recent R18.00/50 range, but with some volatility in this range, especially with no data or news out of the US. Expect the Rand to test the range in the following weeks when the US data sets are set to hog the headlines.