Forex Market Report - 12 November
Good morning
KZN gets a brief respite from the rain today but with forecasts calling for heavy rain late tomorrow and into Thursday we won’t be drying out anytime soon. The Rand also had some downtime yesterday as the US market was closed for Veteran’s Day but things should liven up from today.
These are the mid rates as at 8:20 today:
USD = R14.84
AUD = R10.18
GBP = R19.10
NZD = R9.41
EUR = R16.38
Brent Crude = $62.71 per barrel
Market News
- Not much to report from yesterday as the US public holiday kept movements in the currency market muted. We opened at R14.91 to the Dollar and drifted between R14.93 and R14.85 before settling at R14.89.
- With the US market closed for business yesterday that kept a lid on market activity but the rest of the week is packed with risk events. The two headlining acts are Donald Trump speaking at the Economic Club of New York later today which is followed by FED Chair Jerome Powell testifying in front of the US Senate tomorrow and Thursday. Trump’s speech in particular will be key as the global market pines for any clues on the US-China trade war, and more specifically the progress being made in signing their “phase one” deal. We can expect movements in the Dollar as soon as his speech is released which will impact our exchange rate.
- The following is from Bloomberg: The two biggest players in the US economy will take the stage this week, as President Donald Trump and Federal Reserve Chairman Jerome Powell speak amid signs the nation’s trade war with China may be thawing. Trump will deliver a speech at the Economic Club of New York on Tuesday, with investors hoping he sheds light on a planned initial deal with China. Any comments on trade from the president could prove key to Powell’s outlook when he testifies before lawmakers in Washington on Wednesday and Thursday -- his first major appearances since the U.S. central bank cut rates last month and signaled its easing plans were now on hold.
- The Pound posted significant gains against all currencies yesterday including the Rand, this as Brexit Party leader Nigel Farage said that he would stand down from the December 12 elections and back Boris Johnson. This lessens the chances of a hung parliament which would only delay any Brexit progress, and the Pound found support as a result.
- Locally all eyes remain on Eskom as they have managed to keep the lights on but have increased their warnings about a constrained electricity supply. Their latest update states that 11 000 megawatts have gone down due to unplanned and planned shutdowns, but with diesel and dam levels high enough to provide emergency relief we are not seeing any load shedding as yet.
- No local market data today.
- Possible USD mid rate trading ranges in the Rand today are R14.70 and R15.00.
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