Rand still looking vulnerable
As we head into the calm before the storm, the Rand looks a little vulnerable around the R18.20 mark. We have seen the US dollar on the front foot today, as it tested 1.0650 against the Euro, which was the primary cause for the Rand to weaken. One also has to remember that the US was out of the market yesterday, and the early move in the US dollar could be the repositioning of market players. However, the overall theme is that the US dollar is on the front foot, and the Rand is lagging because of the stronger dollar and domestic factors.
Tomorrow is moving day
Tomorrow will be a day when we will get some short-term momentum for the Rand, which could also play a significant role in the Rand's longer-term direction. We have Rand-specific risk with the South African budget being released tomorrow afternoon. The main focus is on what steps will be taken to alleviate the current energy crisis in South Africa. The other bit of news tomorrow evening is the US Fed minutes which could move the US dollar depending on the tone of the minutes and will affect the Rand. It will be no surprise if the Rand's level vastly differs from where it is currently trading, tomorrow evening.
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