The Euro to South African Rand exchange rate has fallen today in response to Eurozone PMIs, but could recover in the near-term if optimistically forecast German data proves supportive.
The South African Rand, meanwhile, also strengthened thanks to economic data and a statement from President Jacob Zuma.
Last week, the Euro Rand rate dipped to 15.01, but closed off the week’s trading in the region of 15.40.
Euro Exchange Rate Update: Fluctuations seen for Single Currency after Falling PMIs and Retail Sales
Wednesday saw EUR volatility on account of uncertainty being triggered by the declines recorded for the Eurozone services and composite PMIs for September. Additionally, August’s retail sales results have also dropped off on the month and year.
More supportively, however, European Central Bank (ECB) official Ignazio Angeloni stated that he saw little risk of a present crisis in the Eurozone’s banking sector.
South African Rand News: Rally Seen after PMI Growth and Zuma Optimism
Rand trading this week has been positive against key rivals such as the Euro, Pound and US Dollar, thanks to domestic data as well as supportive words from President Jacob Zuma.
In the former case, the Rand has managed to counteract the negative impact of gold prices diving since Monday with the outcome of the Standard Bank PMI for September. This had been forecast to rise from 49.8 to a stagnation figure of 50 points, but instead rose further and printed at 50.7.
Elsewhere, often controversial President Jacob Zuma lent the Rand additional support by stating that;
‘Our economy has registered a 3.3% growth in the second quarter, which will buttress the hard work that our government has been doing to consolidate our credit ratings’.
EUR/ZAR Exchange Rate Forecast
For the rest of this week and the week to come, Euro/South African Rand exchange rate movement may occur as a result of Thursday’s Eurozone September retail PMI, as well as a pair of ECB speeches over the weekend and German trade and sentiment figures on Monday and Tuesday.
From South Africa, input will come from Friday’s foreign reserves figures, as well as Tuesday’s manufacturing production results.
To summarise the expectations of economists, a slight rise is predicted for the Eurozone retail PMI, while Germany’s August trade balance has a surplus expansion in store and the German ZEW economic sentiment index for October is also forecast to jump from 0.5 to 5.1.
With the South African ecostats, September’s foreign exchange reserves are predicted to rise slightly, while both monthly and annual manufacturing production is expected to rise.
Keep up to date w
i
th the latest from TorFX at:
facebook.com/torfx