26 May 2017
Week Ahead: Upcoming trade, PMI, car sales and credit extension data releases to continue reflecting subdued domestic economic activity
The rand appreciated beyond the 13/USD mark this week to be the best performer amongst a selection of 24 emerging market currencies. Currency volatility is likely to remain a feature in the lead up to the ANC policy conference in June and the ANC elective conference in December.
During the week, the USD came under some pressure following the release of the minutes from the March FOMC. Although the minutes confirmed that a rate hike in June was a possibility it was also noted that the Fed would first “await additional evidence indicating that the recent slowing in the pace of economic activity had been transitory”. This was interpreted as less hawkish than anticipated.
The rand is expected to trade in a range of R13.20/USD – R12.60/USD, R14.80/EUR - R14.20/EUR and R17.00/GBP - R16.40/GBP.