CD South Africa: The case of the moving goal posts
Currencies Direct April 30th 2015 - < 1 minute read
A shift in the EUR/USD trend, weaker US economy, a slightly negative US Federal Reserve, the oil recovery and bond sell-off… What does this translate into? It could be rather positive for the rand, as the US dollar rally appears to be hitting the brakes, but one thing is for certain: it will bring volatility.
The euro finally broke 1.10 to the USD yesterday, sending the rand flying below 11.80/$. The catalyst: Poor first quarter US gross domestic product data. Today is certainly not without its risks, as we have the SA trade balance and Eurozone inflation and unemployment data due out later on. Keep your eyes peeled!
Commentary by Gareth Frye