Rand a little firmer ahead of ‘super Wednesday’
The rand was marginally firmer against major global currencies on Tuesday, with analysts expecting the currency to be range-bound ahead of key events later this week.
Wednesday will be busy, with events including an EU summit that will address Brexit, a European Central Bank (ECB) policy announcement and the release of US Federal Reserve minutes.
Investors are waiting for the next catalyst before considering extending current gains, said London Capital Group head of research Jasper Lawler. Market focus on US-China trade talks had ebbed, and the focus has turned to Europe.
At 9.30am the rand was 0.28% firmer at R14.0717/$, 0.18% up at R15.8592/€ and 0.13% stronger at R18.4075/£. The euro was flat at $1.1271.
Local factors are in the back seat, with analysts noting that the rand remains somewhat subdued, ahead of the May 8 national polls.
The rand’s one-week implied volatility has eased to 13.83%, well below its six-month average of 16.35%, according to Bloomberg data.
The local corporate calendar is light, although mining and manufacturing statistics for March are due on Thursday, and will provide further information on SA’s economic performance in the first quarter of the year.
Source: businesslive.co.za
