EM continues to wobble as FOMC approaches

8 September, 2015

The South African rand hit a landmark low against the dollar yesterday with USDZAR breaching the 14.00 level for the first time ever as the South African Reserve Bank maintains its stance on refusing to intervene and we approach the FOMC meeting next week. Whilst expectations for a rate hike from the Federal Reserve this month have been scaled back, the Chinese story continues to dominate, in particular for those countries such as South Africa that have a large export exposure to China. As Africa’s second largest economy continues to slow, the concoction of all these ingredients makes any upside for the rand hard to see, especially if the China story continues to show a rapidly slowing economy.

Today the US markets return after their Bank Holiday and the economic calendar is a little busier. This morning sees another reading of Q2 Eurozone GDP figures which are expected to confirm the block’s economy slowed from 0.4% growth in Q1 to 0.3% in Q2, but given that we know of the Euozone’s sluggish growth we’re unlikely to see any big moves in the euro unless the figure is worse than expected, which could lead to some weakness.


Source link  
CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...


No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...


US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...

USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

  


Share: