The rand shows some recovery after spell of bad events
(Partner Content) The Rand has recovered somewhat despite the SACCI business index level hitting its lowest level in history last week.
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On Wednesday last week the SACCI business confidence index hit its lowest level in history at 77.8. This news did not stop the rand’s rally, which suggests that it could be time for the currency to turn around. The rand might be a great place for investors after having all the negative impacts amid the pandemic already priced in as global risk appetite begins to spark.
Last week, the rand opened at R18.80 to the dollar and R23.51 to the pound, closing the week about 2.6% firmer against the dollar at R18.32 and about 3.2% firmer against the pound at R22.75. This week, the rand has weakened about 0.5% against the dollar but has strengthened a further 0.18% against the pound.
The South African unemployment rate for the first quarter is expected to be released today and is forecasted to climb to 35% from 29.1% recorded in the previous quarter. This data shows the horrific impact the virus and the lockdown has had on the economy.
Market event calendar
Tuesday 12 May
- South Africa unemployment rate Q1: Expected at 35%
- USA inflation rate (YoY) for April: Expected at 0.5%
Wednesday 13 May
- Australia Westpac consumer confidence index for May: Expected at 65
- UK balance of trade for March: Expected at £-1.7 billion
- UK GDP growth rate (YoY) Q1: Expected at -2%
Thursday 14 May
- Australia unemployment rate for April: Expected at 9%
Friday 15 May
- Germany GDP growth rate (YoY) flash Q1: Expected at -2.6%
- Eurozone GDP growth rate (YoY) second est. Q1: Expected at -3.3%
- US retail sales (MoM) for April: Expected at -11.8%