ZAR Gut Feel Commentary:
· The main talking point is the dollar weakness, which gathered pace yesterday the markets once again are zoning in on the US Fed’s sentiments as they release their mid-quarter statement tonight and the FOMC rate decision today. Keep an eye out for any word as to when the Fed will hike US interest rates.
o The rand has been tracking the euro stronger as the EUR / USD nears the 1.10 level, propelling the rand to 11.82/$, its strongest levels since 9 April. If the Euro breaks 1.10 to the USD tonight, the rand could strengthen to 11.70 and perhaps begin a trend stronger however, if the Euro fails to break 1.10, there could be a possibility that the rand remain in the range and return to weaker levels.
· One thing to consider, it remains prudent to add to long dollar positions towards 11.8000 – if you have to buy dollars, now is a great opportunity to do it!
· USD-ZAR at the time of this report: 11.7460
Please feel free to pass this onto anyone you think may benefit from this information.
Please check out our Forex calculator to see the savings we could possibly offer you!
Gapex (Pty) Ltd is An Authorised Financial Services Provider – 37786
Leave a Comment