The Rand experienced a good week after favourable trade data. Stats SA revealed that there was a R12 billion trade surplus for the month of December, beating the R6 billion figure that analysts had forecast. This came as a relief after November’s disappointing R-1.7 billion deficit.
Looking abroad, markets remained focused on US policy movements as Donald Trump continues to unveil his 100-day plan. Since the US presidential inauguration, the US Dollar has weakened 1.7% against the Rand.
Locally, all eyes will be focused on President Jacob Zuma and the annual State of the Nation Address. Despite being marred by interruption from rival party, the Economic Freedom Fighters, the 2016 address highlighted five key points:
Political commentators will consider the progress made on the above points. However, at a glance, it appears there have not been too much progress. Expect to see the Rand weaken if SONA does not inspire confidence in investors.
What to look out for this week:
|Day||What’s happening?||Why it’s important|
|Tuesday||South African foreign exchange reserves to be released.||
|Thursday||Manufacturing production data will be released||
– Anton van Teylingen