The ZAR weakened to reached 17.3200 vs the Dollar as traders continue to exercise caution ahead of today’s key NFP report.
Significant Market Data
- 14H30 : US NON FARM PAYROLLS + 285K EXPECTED VS 528K PREVI0US
- 14H30 : US UNEMPLOYMENT RATE 3.5% VS 3.5% PREVIOUS
- With the NFP report looming large this afternoon, expect a subdued session ahead of the data.
- We can expect some Dollar profit-taking, allowing for some ZAR gains early in the session.
- The local unit losing 3.52% this week after briefly reaching 16.7300 on Tuesday.
- Risk assets in early Asian trading also flat lining, with US stock futures little changed ahead of the key jobs report.
- This indicates a market “ on edge” ahead of the data especially after last month’s surprise.
- WE EXPECT A SPIKE IN VOLATILITY EITHER WAY AT 14H30
- The report likely to offer insight on the state of the economy and influence the outlook for monetary policy.
A word of caution : Prediction of the NFP is impossible and it would be best to wait for the number or reduce exposure by 50% ahead of the release.
- USDZAR : Expect a range 17.1800-17.3700
- Importers 17.2500-17.1800
- Exporters 17.3200-17.3700
- EURZAR : Expect a range of 17.0800-17.3500
- Importers 17.1600-17.0800
- Exporters 17.2600-17.3500
- GBPZAR : Expect a range of 19.8500-20.0600
- Importers 19.9200-19.8500
- Exporters 19.9900-20.0600
| OPENING RATES
- USDZAR 17.2800
- EURZAR 17.2300
- GBPZAR 19.9600
- Cyril Ramaphosa will meet US President Joe Biden at the White House on September 16 to discuss trade, investment, climate and energy, the White House said on Thursday.
- “The two Presidents will reaffirm the importance of the SA-USA partnership, and discuss how to work together to address regional and global challenges,”
- This according to press secretary Karine Jean-Pierre said in a statement. Bloomberg
- To succeed in the fight against corruption and state capture, Chief Justice Raymond Zondo said that the protection of whistleblowers was paramount.
- Speaking at News24’s On The Record Summit in Sandton on Thursday, the Chief Justice highlighted the vital role of whistleblowers in unearthing the rot.
- His comments come a week after the one-year anniversary of Gauteng Health whistleblower Babita Deokaran’s murder. News 24
- The story around PHALA-PHALA gate continues.
- The country continues to ask the question if CR will be charged with “contravention of the exchange control act “
- Earlier, one of the men allegedly implicated in the robbery at Ramaphosa’s farm, alleged that the Hawks took him out of prison for questioning in connection with the robbery without his lawyer present.
- But the Hawks denied these allegations. EWN
- The battle for the “unbanked” market continues, as Shoprite-Checkers joined the party.
- Following the success of TymeBank who partnered with Pick N Pay and Capitec, Shoprite, the country’s largest retailer, is now competing head on.
- Its Money Market Account is now a fully-fledged bank account and can receive payments from any bank in South Africa.
- Shoprite said this will be the first fully-fledged transactional bank account to be offered by a retailer in the country.
- It also says the account is the “lowest cost entry-level bank account on the market”.
- The account has a single fee: R5 for a cash withdrawal at Shoprite/Checkers/U-Save tills. Moneyweb
- After a late session rally on Wallstreet, we find US stock futures were unchanged on Friday.
- Investors focussing on this afternoon’s key jobs report that could offer insight on the state of the economy and influence the outlook for monetary policy.
- Futures contracts tied to the three major indexes were all trading near breakeven.
- In regular trading on Thursday, the Dow and S&P 500 rose 0.46% and 0.30%, respectively, while the tech-heavy Nasdaq Composite lost 0.26%.
- All three benchmarks are set to decline for the third straight week, after the Fed’s commitment to fight inflation and that it would take priority over growth.
- The US economy is expected to have added 300,000 jobs in August, less than the surprisingly strong 528,000 jobs added in July, and another big upward surprise could bolster bets for more aggressive tightening.
- Yields continue to spike across the global as Central bankers continue to battle against multi-decade high inflation.
- The US 10YT yield increased towards 3.30%, the highest in two and a half months.
- Yields also approaching a 3-½-year high hit in May ahead of the highly anticipated jobs report on Friday.
- Yesterday’s weekly jobless claims unexpectedly fell to a 9-week low at the end of August.
- The data indicating that the economic slowdown is not yet triggering widespread job losses.
- The US nonfarm payrolls report is expected to show the economy added 300K positions in August, strengthening the case for aggressive tightening by the Fed to combat inflation.
- Some Fed officials have been reiterating the fed funds rate needs to raise to at least 4% by early next year and stay there to curb soaring inflation.
- The Dow gained 145 to 31,656
- The Sp500 added 11 to 3,966
- The Nasdaq declined 31 to 11,785
- image : Trading economics