markets

 

New fears on the horizon

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China’s previously announced tariff on US products came into effect yesterday with more than 120 US products being affected.

The introduction of the 15% tariff could spark fresh fears of a trade war amongst global markets. On the topic of 15%, yesterday also saw the increase of VAT and with fuel levies set to be implemented tomorrow, consumers are set to be in the firing line.

It’s a quiet start to the week on the data front following the lengthy Easter weekend break. This weekend also saw the sad passing Winnie Madikizela-Mandela at the age of 81. Have a great week all.

Today’s Rate

USD/ZAR 11.8181
GBP/ZAR 16.6298
EUR/ZAR 14.5701
ZAR/JPY 8.9673
CNY/ZAR 1.8780
AUD/ZAR 9.1026
CHF/ZAR 12.3780
AED/ZAR 3.2180
SGD/ZAR 9.0165
NOK/ZAR 1.4984
EUR/USD 1.2332
GBP/USD 1.4078
GBP/EUR 1.1415

All rates quoted are the interbank rate
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Is there any more good news on it’s way with SARB meeting today?

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Local markets shift focus to the SARB’s MPC meeting today which could confirm a possible interest rate cut.

Speculation is that Governor Lesetja Kganyago could cut the interest rate by 25bps. Following Moody’s decision to change SA’s outlook to stable, it looks like that the SARB will follow up with some more positive news, this time for consumers with a “lil’ debt”.

Despite SA being a “small fish” Moody’s is said to start affirming our improved ratings. Globally: the US and China have agreed to negotiations to finalize a trade deal therefore minimizing a potential trade war. Have a great Wednesday!

Today’s Rate

USD/ZAR 11.7224
GBP/ZAR 16.6030
EUR/ZAR 14.5231
ZAR/JPY 9.0130
CNY/ZAR 1.8637
AUD/ZAR 9.9837
CHF/ZAR 12.3262
AED/ZAR 3.1914
SGD/ZAR 8.9545
NOK/ZAR 1.5124
EUR/USD 1.2385
GBP/USD 1.4159
GBP/EUR 1.1433

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Credit Ratings Agency Moody’s shows us the light on Friday night

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Friday night ended on a high, with no dreaded downgrade from credit ratings agency Moody’s.

The announcement was greatly welcomed as it was supported with the outlook being changed to stable, which looks to restore some lost confidence in South Africa. The change in political leadership and a clear plan for addressing fiscal pressures (2018 Budget) were some of the factors that influenced Moody’s decision.

The result sees the rand open at 11.75/$, with room for further gains possible. Over in “Trump-land”, pressure still mounts as the rise in trade tariffs indicates negative impact to global growth. Have a great Monday!

Today’s Rate

USD/ZAR 11.6397
GBP/ZAR 16.544
EUR/ZAR 14.4440
ZAR/JPY 9.029
CNY/ZAR 1.8553
AUD/ZAR 9.0121
CHF/ZAR 12.3022
AED/ZAR 3.1685
SGD/ZAR 8.8802
NOK/ZAR 1.5138
EUR/USD 1.2408
GBP/USD 1.4212
GBP/EUR 1.
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The Trade War heats up …Tine to Take Cover?

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The rand is stronger this morning as the US and China Trade war heats up.

“The Donald” announced plans to slap certain Chinese imports with a 25% tariff, which was met with “fire and fury” and a 15% – 25% tariff on certain US imports by China. The US treasury dropped another “bomb” as they plan to restrict Chinese investments in certain US sectors.

Asian and US equities sank as hits to global growth are expected. Across the pond, the bank of England left interest rates unchanged, but hinted a future increase might be in play. SA awaits Moody’s credit rating decision later tonight with the rainbow nation in a great position to dodge the dreaded downgrade. Have a great day and an “Epic” weekend!

Today’s Rate

USD/ZAR 11.7870
GBP/ZAR 16.6306
EUR/ZAR 14.5379
ZAR/JPY 8.9054
CNY/ZAR 1.8641
AUD/ZAR 9.1051
CHF/ZAR 12.4518
AED/ZAR 3.2095
SGD/ZA
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No Zooooma Response…. No Confidence!!

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Pressure mounts as there is still no outcome as to when President Zuma will be vacating the Union Buildings.

The ANC is expected to have a press conference by 2pm today on whether Zuma would be resigning…rather late than never. In addition, opposing parties are running out of patience and are pushing for a vote of “No Confidence”.
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Rand slides on US inflation fears

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The rand weakened overnight as a result of better than expect US Jobs numbers and wage growth released Friday, sparking fears of higher than expected US interest rate increases during 2018.

The US stock market lost 2.5% as investors cashed out to hold USD in anticipation of a Fed hike in March. The GBP/ZAR continues to flirt with the 17/£ level as a false break to 17.10/£ on Friday was given back on speculation over Zuma’s demise.
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