29 Apr 2018

Week Ahead: We expect April’s PMI gauge to lift marginally to 48.0 from 46.9 in March, supported by recent positive events

Annabel Bishop

Chief Economist

Figure 1: SA Monetary Policy Committee (MPC) meeting dates for 2018

Currency outlook for the week ahead and foreign portfolio flows:

Figure 2: Purchasing price parity value of the rand

The domestic currency had a dismal week, reaching its lowest level in over three months, primarily on the back of a rally in the international oil price and its effect on US inflation and Treasury yields. The dollar strengthened against most major currencies, with the US dollar index gaining 2.4% over the last two weeks. On the local front, national protest action over wages would have also negatively affected the rand.


This week, the rand is expected to trade in a range of R11.92/USD – R12.92/USD, R14.55/EUR - R15.55/EUR and R16.56/GBP - R17.56GBP.

Figure 3: Purchasing price parity value of the rand

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