Money SA economy
The rand was range bound in quiet trade with little fresh news to offer direction. However, US data later in the day could provide some direction for forex markets.
At 8.45am the rand was bid at R7.26 to the dollar, R9.89 to the euro and R11.16 to the pound. The euro was bid at $1.3632 from $1.3614 previously.
RMB analysts said in their morning report that range-bound trade in USD/ZAR continues, with short term moves constrained by the band of resistance at 7.20/25.
"After yesterday's exceptionally boring trade, the market should at least heat up a bit today. Local retail sales this morning will probably be ignored but attention switches to US monetary policy this afternoon as we expect CPI and retail sales data followed by Fed Chairman Bernanke's address to Congress," they said.
With inflation pressures likely to keep slipping, the expectation is for very dovish comments. This keeps risk taking intact and might even allow EUR/USD some fresh gains after the positive Greek debt auction yesterday.
Dow Jones Newswires reported the euro and sterling are little changed against each other but both are higher against the dollar and yen.
On Tuesday, the euro finished marginally higher, as it failed to hold onto most of its gains made on the back of strong demand for short-term Greek debt, and succumbed to doubts about longer-term prospects for the common currency.
