Rand gains from data developments could be short-lived‚ analysts warn

03 June 2015 - 12:29 By Colleen Goko

The rand traded in a firmer environment as the dollar lost ground against major currencies‚ following mixed US data overnight. US vehicle sales surged to a new post-recession high in May‚ data showed on Tuesday‚ but total factory orders fell more than expected in April and durable goods orders first reported last week were revised lower.The dollar index — a measure of the value of the greenback relative to its most significant trading partners — had declined by 1.58% at its close on Tuesday night.Analysts‚ however‚ warned that rand gains from these data developments could be short-lived as there was more market-moving data due for the rest of the week.At 8.40am‚ the rand was at R12.1986 to the dollar from a previous close of R12.1967.Against the euro the rand was at R13.6461 from a previous R13.6001 and against the British pound at R18.7456 from R18.7128.The euro was at $1.1187 from a previous close of $1.1150.Risk event on the day comes from offshore developments with the European Central Bank (ECB) announcing its interest rate decision and the US releasing private employment data for May.The ECB is expected to leave its interest rate at its current record-low of 0.05% for yet another month.At the press conference of ECB president Mario Draghi‚ investors will watch for more details about the bank’s bond-buying programme.In the US‚ private nonfarm payrolls are projected to have increased by 167‚000 in May. The private employment report is seen by some economists as a foreshadow of what government nonfarm payrolls figures could contain on Friday. - RDM News Wire, BDlive..

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