Rand enjoys some support as investors eye Fed dovishness
First-quarter GDP figures are due out later in the day, a contraction of 1.6% is expected
The rand and other emerging-market currencies received some support as the dollar was put under pressure due to growing speculation that the US Federal Reserve may cut interest rates in 2019.
“Investors are now shifting their focus towards central banks. Expectations of a Fed rate cut increased following an unexpected contraction in the US manufacturing sector and following comments from the Fed’s James Bullard on Monday” said London Capital Group’s head of research, Jasper Lawler. “The St Louis Fed president said that a cut to interest rates ‘may be warranted soon’ given the trade risks and muted inflation.”..
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