| Gut Feel | |
| Rates | |
| USD / ZAR: | 13,1425 |
| EUR / ZAR: | 14,0986 |
| GBP / ZAR: | 16,901 |
| ZAR / JPY: | 8,2962 |
| EUR / USD: | 1,0716 |
| GBP / USD: | 1,2793 |
| USD / JPY: | 109,19 |
| Ø | ZAR defeats the pessimists and breaks through 13.20 | |||||||
| Ø | Rand strengthens on back of Min of Fin rhetoric | |||||||
| Ø | ZAR could break 13.00 level | |||||||
| Ø | Eskom trying to bully its way forward with Nuclear programme | |||||||
| ZAR defeats the pessimists and strengthens further, breaking through 13.20 with ease -reason for the move is the Min of Fin rhetoric putting to bed fears on fiscal policy and stronger action against parastatals. It’s far too early to fall into the trap and believe that this is the case, as his past alliance with the Guptas must play a part going forward. Regarding Eskom, they again trying to buck the procurement system by looking for waivers and exemptions from the procurement regulations, so that they can begin the Nuclear programme. ZAR has gone a long way and market talk is that it’s looking to break the 13.00 level, even as some profit taking and dollar demand will be seen, this must be seen as good levels. I am not convinced that overseas investors are completely safe with investments into SA, until Min Gigaba shows his mettle against state capture. Talking to traders they’re staying quite square to long ahead of another long weekend next week. Trading range 13.00-13.50 |
| Economic Data: | 21st Apr | |||
| Ø | US Market Manf PMI | |||
| Ø | US Existing Home Sales m/m | |||
” When I got into the business, there was so little information on fundamentals, and what little information one could get was largely imperfect. We learned just to go with the chart. Why work when Mr. Market can do it for you? – PTJ
USD/ZAR Daily Close
We are a little long but would sell out today as there is potentially a move down to the R12.75 level in the coming days.
“The markets are never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore
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