The rand has made record gains in the month of April by climbing 4.2% against the dollar and 3% against the pound. Thin liquidity is expected this week resulting from Tuesday’s public holiday. Traders are expected to sit tight as there are very few news events expected in the coming week to rally the currency in any direction.
The rand is currently trading at 14.271 against the USD, 19.835 against the pound and 17.233 against the euro.
Across the pond, the US also has a slow news week with only the Fed’s interest rate decision on Wednesday. Nothing is expected to change but the tone of the press conference could move the markets.
The UK’s global Anti-Corruption Regime, launched by UK foreign Secretary Dominic Raab, has imposed sanctions against the Gupta brothers by banning them from the UK.
In local news, President Cyril Ramaphosa has started a new national task force to combat climate change, stating that water shortages, crop failure and expensive food all contribute to a more difficult life for the poor in South Africa. The upcoming plan will see a diversified outlook on fiscal policies put into place to fund such an expensive green initiative.
WEEKLY MARKET EVENTS
WEDNESDAY 28 APRIL
- US: FED interest rate decision – Expected to be unchanged
THURSDAY 29 APRIL
- SA: PPI data – Forecasted to increase, shows growth in economy
FRIDAY 30 APRIL
- ZAR: Balance of trade – Steadily increasing over past months
