Rand to hold as Greece reaches

Rand to hold as Greece reaches new debt agreement

The GBP-ZAR rate dropped to 19.11 on Friday last week, but it could not keep its footing and closed at 19.32. The rate has since hovered around this point with no real changes expected, especially with all eyes on Greece and the Euro’s movements.

Rand to hold as Greece reaches

It has been a tense weekend in the Eurozone, with no clear resolution in sight. A new deadline has been set for this week and in order to meet it the Greek government will have to fast track several pieces of legislation to affect the necessary reforms outlined in the bailout agreement. The reforms are seen as necessary to appease creditor concerns and rebuild confidence as Greece bids to turn sustainable.

This week may be packed with further significance as Fed Chair Yellen’s testimony on US monetary policy on Wednesday will show if there is definitely optimism for the future, or whether a more cautious approach should be adopted. Both Yellen’s speech and the ongoing turbulence in Greece will have an impact on how ZAR rates will go in the coming month.

What data should you look out for this week? Besides the information above, the GBP Consumer Price Index and Core Consumer Price Index data will be released today (July 14). These will be the key measures of inflation and could change the pricing of goods as well as the currency in general.

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