The Rand opened stronger against all the majors this morning.
The EUR hit a new yearly low against the ZAR this morning at 18.9771. The weakness in the EUR can be attributed to the upcoming monetary policy decision on Thursday and the dovish sentiment held by the ECB.
It is widely anticipated that the ECB will cut interest rates by 25 basis points on Thursday and will continue to cut rates in increments of 25 basis points in future meetings.
The ZAR strengthened against the USD on Friday following the PPI data release. PPI is generally seen as predictor for CPI inflation. PPI (MoM) came out at 0.0% growth, compared to expected 0.1% growth and previous months 0.2% growth. This data release re-affirms expectations that the Feds will likely cut interest rates next month.
Todays Events:
US Holiday – Indigenous Peoples Day
Multiple Central bank speeches today, these speeches tend to give investors clues about future interest rate decisions: