The traded in a wide range from 17.7900 to 17.4400 before and post the SARB MPC rate decision.
Significant Market Data
- 20H00 : US FED CHAIR JEROME POWELL SPEECH
- The ZAR continues to weaken even after the SARB 75 bps hike.
- This morning we opening at 7.6200 , but have already weakened 10 cents to 17.7200 as yields continue to rise and stock markets trade lower.
- The effect of a stronger Dollar and the continued spike in US yields weighing on the Local unit.
- In addition, the week long stage 5 power cuts have analysts debating about the impact on SA’s economy and if the SARB / Country can really afford continued rate hikes.
- This would place the ZAR at the mercy of FED hikes and this unfortunately means the ZAR likely to continue on the current path, until the Fed stops.
- On Thursday, the SARB hiked rates again increasing the repo to 6.75% and the Prime overdraft 9.75% .
- Trade : BUY USDZAR
- USDZAR : Expect a range 17.4600-17.7200
- Importers 17.5400-17.4600
- Exporters 17.6500-17.7200
- EURZAR : Expect a range of 17.1500-17.5100
- Importers 17.2500-17.1500
- Exporters 17.3500-17.5100
- GBPZAR : Expect a range of 19.6200-19.9500
- Importers 19.7500-19.6200
- Exporters 19.8500-19.9500
- USDZAR 17.6000
- EURZAR 17.3100
- GBPZAR 19.7900
- Minister of Energy Mineral Resources Gwede Mantashe said he was not responsible for the country’s energy crisis.
- Mantashe’s comments come on the back of calls for him to be axed after Eskom implemented stage 6 power cuts last week.
- Mantashe faced criticism over the rampant planned power cuts.
- Speaking at the signing of power purchase agreements in Centurion on Thursday, Mantashe hit out at critics.
- Mantashe refused to take the fall for the country’s continued electricity woes. Source : EWN
- The ANC protected Ramaphosa, in Parliament after it staved off an attempt by the opposition to debate the Phala Phala farm saga on Thursday – at least for now.
- The DA submitted its motion last week, calling for the establishment of an ad hoc committee to investigate matters related to the burglary on the president’s farm.
- But at the eleventh hour, the ANC has now put a stop to the debate. IOL
- Not everyone was in lockstep with the SARB’s rate hike decision.
- Various unions have hit out at the SARB’s decision to hike interest rates, accusing the central bank of choking small businesses.
- SAFTU spokesperson Trevor Shaku said that he did not believe that the decision was made in the best interests of the economy.
- “It is regressive and sabotages the economy further in the context of low growth,” Shaku said.
- Shaku said that higher mortgage costs could drive small and medium businesses to default on payments. News24
- On Thursday, stocks continued its decline as the major averages extended losses on Thursday, with the Dow losing 0.35%, while the S&P 500 and Nasdaq Composite declined 0.84% and 1.37%, respectively.
- US stock futures fell on Friday, with the major averages on track to decline for the second straight week as investors worried about the falling odds of a soft economic landing.
- The Federal Reserve remains intent on bringing down inflation with aggressive interest rate hikes. Futures contracts tied to the three major indexes were all in negative territory.
- In extended trading, Costco dropped nearly 3% after reporting higher labour and freight costs, while DocuSign and Guidewire rose on positive corporate updates.
- Consumer discretionary, financials and industrials were hit by recession fears, while defensive stocks outperformed.
- All three benchmarks are headed for their second straight losing week and are all down at least 2% so far during the period.
- The Dow fell 107 to 30,076
- The Sp500 fell 31 to 3,757
- The Nasdaq fell 153 to 11,066