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  
UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

US Equities at Record Levels

US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy...

USD Stabilizes

Hurricane Irma has, reportedly, inflicted less damage on the US mainland than was originally predicted, thereby reducing the economic impact of the devastation it was expected to...


Markets on Edge

With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose....

Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...

US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...


Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...

All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

  


Share: