Rand muted as investors await US Fed testimony
Jerome Powell is expected to give his outlook for US monetary at Congress on Wednesday
The rand was flat against the dollar on Tuesday morning ahead of US Federal Reserve chair Jerome Powell's testimony before US Congress this week.
Powell is expected to give an outlook for US monetary policy on Wednesday as expectations that the Fed will cut interest rates become faint. The Fed will also release its meeting minutes for June.
“The market will watch these two events for an indication of where the Fed's thinking is in relation to their expected rate cut,” TreasuryONE senior currency dealer Andre Botha said.
Investors have priced in a 100% chance of a rate cut at the Fed's next meeting at the end of July but expectations of a sharp rate cut have been dampened by improved US nonfarm payrolls released last week.
At 09.50am, the rand was little changed at R14.1774/$. It had firmed 0.1% to R15.8928/€ and 0.29% to R17.6987/£. The euro was flat at $1.121.
Gold had fallen 0.13% to $1,393.66/oz and platinum 0.5% to $810.76. Brent crude had gained 0.23% to $64.05 a barrel.
No major domestic economic data is expected on Tuesday. The US is set to publish job openings and labour turnover data for May.