Rand subdued as investors set eyes on US jobs data
The rand was flat against the dollar on Friday morning ahead of US employment data.
Investors are closely watching the US nonfarm payrolls for June to be released later in the day, which measure the change in the number of jobs in the US economy over a month. Analysts say the latest nonfarm payrolls will serve as an indication of how soon the US Federal Reserve may need to cut interest rates.
“The focus will fall on the key sets of employment and earnings data due for release on Friday afternoon, which are likely to set the tone for the Fed. Should the employment figures exceed market expectations, we can expect a slightly less accommodative stance by the US central bank,” Bianca Botes, treasury partner at Peregrine Solutions, said in a note.
Analysts are expecting nonfarm payrolls to increase by 160,000 in June, according to a Bloomberg consensus, after increasing by 75,000 in May.
At 09.35am, the rand was flat at R14.058/$ after reaching below R14/$ on Thursday, its best level in three months. The rand was also little changed at R17.6745/£ but gained 0.11% to R15.8394/€. The euro had fallen 0.16% to $1,1267.
Gold was flat at $1,415.43/oz and platinum had fallen 0.26% to $833.57. Brent crude was little changed at $63.10 a barrel.
Locally, the Reserve Bank will publish data on its gold and foreign exchange reserves later on Friday. The US will also release its unemployment rate for June.
Source: businesslive.co.za