This Rand report is brought to you by Sable International
The Rand took a hit after it dropped for three consecutive days at the tail-end of last week. It’s down by about 5% in February, the most it has fallen in a month since the catastrophic hit it took in August last year.
The Rand seems to be improving against the Dollar after most emerging markets were impacted by the fallout between Kim Jong Un and Donald Trump. At around 06:00 GMT on Monday, the Rand traded at R14,16 against the US Dollar, which strengthened by just under 0.5% during the week, closing at R14,23 on Friday.
The week ahead sees the announcement of South
Africa’s economic performance for 2018, as the remaining GDP data for the final
quarter of last year is to be made public. The Rand bounced back in the third
quarter of 2018, with a GDP growth of 2.2% following the recession. We expect
the increase for the final quarter to be between 1.0%-1.8%.
On Thursday, we can look forward to some positive
news with the release of the current account deficit, which is expected to have
narrowed. This will allow the Rand to get some much-needed stability.
Market event calendar
Tuesday 5 March
- GDP Fourth Quarter Results – Positive GDP results for the fourth
quarter looks to strengthen the Rand.
Wednesday 6 March
- SACCI BCI Results – Expected to level
out after showing some consistency in the past four months.
Thursday 7 March
- The Current Account Deficit – The ZAR is
expected to reap the rewards of an improving deficit.
- ECB Interest Rate – While expected to
remain unmoved, any change will bring more volatility surrounding the ZAR.
Friday 8 March
- Non-farm Payroll in the US – An expected drop which will cause the USD to suffer and in turn strengthen the ZAR/USD trade.
The post The Rand looks unsteady as talks between Trump and Kim Jong Un get heated appeared first on The South African.