The Rand Report: A strong rand amidst a tense market

While the global economic stance is quite volatile and tensions are growing higher between Russia and Ukraine, the rand has surprised everyone by coming out on top. Strengthening against all the top 20 currencies, the most notable being against the Swedish Krona (SEK) (4.36%) and the Russian Ruble (RUB) (4.13%). Any incline in violence between Russia and Ukraine could lead to safe-haven flows dominating the market causing money to move away from emerging markets such as South Africa.

The Rand Report: A strong rand amidst a tense market. Image: Supplied

The main event from last week was the State of the Nation Address (SONA) by President Cyril Ramaphosa. Overall, there was nothing that shocked markets, and we saw the ZAR appreciate. Coming up, traders are curious to see if the rand can maintain its gains from the last week, especially in the current state of global geopolitics. The emerging markets are usually the first to sell off when risks elevate.

This week, the main data events are the UK unemployment rate on Tuesday and the UK inflation data on Wednesday. The UK unemployment rate is expected to remain stable at 4.1% while the inflation data is expected to come in at 5.4%. The UK retail sales data will be released at the end of the week and is expected to increase slightly, which is positive for the UK economy.

Weekly market events:

Tuesday 15 February

GBP: ILO unemployment rate

Wednesday 16 February

GBP: CPI data

USD: Retail sales and FOMC minutes

ZAR: Inflation rate and retail sales data

Friday 18 February

GBP: Retail sales data

Get our Daily Rand Report delivered straight to your inbox every weekday to keep on top of everything happening with the ZAR. 

Check out the Sable International Currency Zone to get the latest live exchange rates and easily transfer your money into or out of South Africa.

Spread the love