The weakening of the rand over the last few days has been catalysed by a resurgence in the dollar rather than by domestic catalysts. The US dollar has strengthened (against most currencies) as the region finds some short term reprieve from geo-political tensions and inclement weather fears.
Possible directional Catalysts
Catalysts for the remainder of the week to watch in relation to the USD/ZAR currency pair are as follows:
Thursday - The South African Reserve Bank (SARB) will release the quarterly market bulletin where market will be most concerned with the regions current account is fairing as a percentage of Gross Domestic Product (previously -2.1%). Thursday will also see CPI Inflation data and Weekly Employment data out of the US.
Friday – Markets will look to Core retail and retail sales data out of the US as potential directional catalysts for the market.