Money SA economy
The South African rand was a fraction firmer from its overnight levels in early trade on Thursday, tracking the euro for direction ahead of a discussion on interest rates by the European Central Bank later today.
At 08.56am local time the rand was bid at R7.26 to the dollar, R9.32 to the euro and R11.20 to the pound. The euro was bid at $1.2817 from $1.2821 overnight.
A trader said: "We will watch the euro for direction, but for now the range is 7.28-34 against the dollar ahead of a speech by European Central Bank President Claude Trichet."
RMB analysts noted in a morning report that spring day across the southern hemisphere was heralded in by a string of positive global economic data. Global equities, commodities and high-yielding assets rallied, with the US dollar/rand dipping below 7.30.
"While financial market indicators reflect a somewhat rosy picture, the underlying economic data remains weak. Although US manufacturing activity remains expansionary, construction spending has fallen dramatically and may result in a further downward revision to 2Q10 GDP growth.
Moreover, remaining US employment data, strewn across the next two days, should reflect additional job losses. Overall payrolls is anticipated to have fallen by 118,000 last month despite the moderate pick up in private employment figures," the analysts said.
Dow Jones Newswires reports that European Central Bank President Jean-Claude Trichet will speak to the press at 1230 GMT Thursday, after the central bank discusses interest rates. Analysts believe the ECB will hold its key rate steady at 1.00%.
