The European Central Bank policy announcement is Thursday’s main event, with the expectation that stimulus is on the way
07 March 2019 - 10:20
bykarl gernetzky
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The rand was slightly firmer against major global currencies on Thursday morning, ahead of the European Central Bank (ECB) monetary policy announcement later in the day.
ECB president Mario Draghi is set to hold a press conference at 3.30pm local time, with some speculation in the market that recent weak eurozone economic data will lead to the bank announcing stimulus measures.
The ECB is said to be considering downgrading the euro area’s growth forecasts, implying some sort of economic support, said Sasfin Securities fixed-income analyst Alvin Chawasema.
At 9.40am the rand was 0.17% stronger at $14.2428/$, 0.16% up at R16.104/€ and 0.15% firmer at R18.7664/£. The euro was unchanged at $1.1307.
Local issues are on the back burner, although the announcement by Eskom on Wednesday that load-shedding may be here to stay put the local currency and bonds under some strain.
The National Energy Regulator of SA (Nersa) is expected to make an electricity tariff announcement later on Thursday.
Consumers could pay 15% more for electricity if the regulator accedes to Eskom’s tariff wishes. Analysts and business groups have warned that such an increase would cause serious pressure on SA’s economy, notably on the mining and manufacturing sectors.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Rand a little firmer as market eyes ECB
The European Central Bank policy announcement is Thursday’s main event, with the expectation that stimulus is on the way
The rand was slightly firmer against major global currencies on Thursday morning, ahead of the European Central Bank (ECB) monetary policy announcement later in the day.
ECB president Mario Draghi is set to hold a press conference at 3.30pm local time, with some speculation in the market that recent weak eurozone economic data will lead to the bank announcing stimulus measures.
The ECB is said to be considering downgrading the euro area’s growth forecasts, implying some sort of economic support, said Sasfin Securities fixed-income analyst Alvin Chawasema.
At 9.40am the rand was 0.17% stronger at $14.2428/$, 0.16% up at R16.104/€ and 0.15% firmer at R18.7664/£. The euro was unchanged at $1.1307.
Local issues are on the back burner, although the announcement by Eskom on Wednesday that load-shedding may be here to stay put the local currency and bonds under some strain.
The National Energy Regulator of SA (Nersa) is expected to make an electricity tariff announcement later on Thursday.
Consumers could pay 15% more for electricity if the regulator accedes to Eskom’s tariff wishes. Analysts and business groups have warned that such an increase would cause serious pressure on SA’s economy, notably on the mining and manufacturing sectors.
gernetzkyk@businesslive.co.za
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