Forex News

Yesterday, the South African rand weakened against the US dollar, after data showed that South Africa's unemployment rate rose in 1Q. Speeches by couple of US Federal Reserve (Fed) officials lent supported to the possibility of the central bank raising interest rates during this year. In economic news, data showed that while the US labour market conditions index improved from the previous month, it continues to remain in negative territory. Investor focus will be on JOLTS job openings report along with a speech by New York Fed President William Dudley scheduled later in the day.

The yield on benchmark government bonds were mixed yesterday. The yield on 2016 bond declined to 7.42% while that for the longer-dated 2026 issue rose to 9.14%.

At 06:00 SAST, the US dollar is trading 0.3% lower against the South African rand at R 15.1370, while the euro is trading 0.2% lower at R 17.2262. At 06:00 SAST, the British pound has declined 0.2% against the South African rand to trade at R 21.8019.

Yesterday, the euro weakened against most of the major currencies, but was higher against the South African rand. Data showed that German factory orders surged more-than-expected for March. Additionally, data showed that investor sentiment in the eurozone improved for May. Later today, German trade balance and industrial production data will be eyed by investors for further clues. Also on tab will be the release of industrial output numbers from the second and third largest economies of the eurozone.

At 06:00 SAST, the euro marginally slipped against the US dollar to trade at $1.1381, while it has marginally gained against the British pound to trade at GBP 0.7901.

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