Tue. Oct 22nd, 2019

Rand to remain unstable in the coming weeks

The future of Brexit lies in the balance with Tuesday’s vote.

The post Rand to remain unstable in the coming weeks appeared first on The South African.

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This Rand report is brought to you by Sable International

The Rand is looking to come under a bit of pressure this week with not much improvement expected in the key economic sectors following South Africa’s continued power supply challenges.

The mining and manufacturing figures will be released on Thursday. Despite the difficult times, the latter is forecast to have expanded during January after a weak showing in December last year.

Tuesday’s parliamentary vote is likely to impact the Rand as Theresa May’s “meaningful vote” goes to stage in the House of Commons. On Monday evening the British prime minister made a late dash to Strasbourg to try and tweak a deal with the EU leaders. The members of Parliament will be asked to vote on the amended deal today, after a motion came to the table last night.

1f3a974f 2019 03 12 the rand report - Rand to remain unstable in the coming weeks

On the local
front, the Rand is set for even more volatility in the months to come with
uncertainty surrounding the policies of the state in the run-up to the elections
in May this year. South Africa’s current account deficit narrowed
to R110.2 B in the last quarter of 2018, which is equivalent to 2.2% of the
GDP, compared to 3.7% in the prior quarter, thus boosting the value of the Rand
temporarily.

Market event calendar

Tuesday 12 March

  • UK
    Parliamentary vote on Brexit deal –
    MPs to vote
    on May’s Brexit deal.
  • US
    Inflation Rate –
    Expected to remain at 1.6%, but any change will cause a swing for
    the US Dollar.

Wednesday 13 March

  • GB Spring Budget – Plans are unclear due to the uncertainty surrounding Brexit.

Thursday 14 March

  • SA
    Mining and Manufacturing Production Data –
    This will
    indicate the strength of the country’s key economic sectors. Positive results
    will boost the Rand’s value.

Friday 15 March

  • US Michigan Consumer Sentiment – Set to rebound from dwindling figures in January and February. This should increase the value of the US Dollar.

-Dean Reich

The post Rand to remain unstable in the coming weeks appeared first on The South African.

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