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
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