Week Ahead: GDP growth likely to moderate in Q4.17 to 1.8% qqsaa from 2.0% qqsaa in Q3.17

04 Mar 2018

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 rand lost some of its momentum last week, along with other emerging market currencies, depreciating by 3.2%, evidencing recent volatility. This transpired even though the greenback lost some ground towards the end of last week after President Donald Trump stated that the US will impose tariffs on steel and aluminium imports, sparking fears of a trade war.
 
When comparing the rand to a basket of emerging market currencies over a three month period however, the rand is still the best performing currency.
 
In the week ahead, the rand is expected to trade in a range of R11.46/USD – R12.46/USD, R14.23/EUR - R15.23/EURand R15.98/GBP - R16.98/GBP.
Figure 3: Purchasing price parity value of the rand

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