mcebisi jonas

(Gallo Images)

The Rand continues to ride high

The Rand has remained one of the strongest rising currencies on the market, with an increase of 6.15% against the US Dollar and 5.14% against the Euro since the beginning of this year. Despite market expectations, we are seeing no signs of the trend slowing down.

mcebisi jonas

(Gallo Images)

Last week saw the Dollar trading at 12.9125 to the Rand, its lowest since 2015. This rally was halted by news that Deputy Finance Minister Mcebisi Jonas was being investigated by the Hawks for corruption. However, we expect the Rand to rise as this week’s US non-farm payrolls and unemployment data are released.

The Euro has seen another dip against the Rand, as Germany and Turkey have been locked into an intensifying political battle that is expected to add more volatility to the Eurozone. This week the European Central Bank announces its interest rate decision – which will likely increase Euro volatility.

China will announce its trade balance this week, an event that affects global forex markets.

The Rand continues to strengthen against the Pound and will likely rise as the UK enters the final stages of finalising a Brexit plan. Reports indicate that the UK will leave the bloc without paying any financial settlement – a decision that will almost certainly make it harder for Britain to secure favourable access to EU markets.

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What to look out for this week:

Day What’s happening? Why it’s important
Wednesday China’s trade balance A positive value shows a trade surplus and a negative shows a deficit. The consensus is that the value will decrease by more than 50%, but will remain in the positive.
Thursday ECB interest rate decision If the ECB has a dovish view on the European economy and maintains/cuts the interest rate, it will be seen as negative or bearish.
Friday Bank of England Consumer Inflation Expectations This is the percentage that consumers expect the price of goods and services to change during the next 12 months.
Friday US Non-farm payrolls This the number of new jobs created during the previous month. We are expected to see a 30,000 decrease from last month.

 

– Daniel Glyn-Cuthbert

1st Contact Forex