The ZAR remains range bound and listless as we await the elections and various commission results. The markets across the world are being affected by the British Brexit as to what the outcome is going to be, after Theresa May lost another Brexit vote which in return created uncertainty in EM.
Another huge factor influencing the ZAR performance is the market speculation whether Moody’s will downgrade SA. Moody’s have been pretty careful as to what route to take in regards to downgrading as they remain behind other agencies who have downgraded SA already. The market cannot be fooled forever as CR17 has made an effort to tackle corruption, but still has a Cabinet ministers on his candidate list who are compromised.
In Asia, markets are in turmoil and cause for concern as risk aversion increases. Not much on the local data front as the market watches US data.
Traders still remain long. Trading range 14.20 – 14.70.
US Durable Goods order
US Durable Goods Orders
US PPI Final Demand y/y