Rand to trade in narrow range on data-thin day

18 August 2015 - 12:54 By Colleen Goko

The rand was weaker on Tuesday morning but continued to trade in a narrow range with little data due on the day to give direction. "The rand has fallen to its weakest level yet‚ but there is little to report and no reason to think the market will do anything but range-trade until tomorrow‚" Rand Merchant Bank analysts said in a note."Having traded to a fresh 14-year high against the dollar on Tuesday‚ a 10c range around the opening levels seems reasonable‚ which implies fresh highs are likely‚ but not necessarily sustainable. Range-trading is most evident in euro/rand‚ which is trading flat. New all-time highs have been seen on the pound/rand‚ but even here the bias is to trade sideways‚" the bank said.At 8.35am‚ the rand was at R12.9197 against the dollar from a previous close of R12.8988.Against the euro the rand was at R14.3018 from a previous close of R14.2870. Against the pound‚ the rand was at R20.1215 from R20.1054.The euro was at $1.1071 from $1.1076.Wednesday will be data and event intensive. On the local front‚ Statistics SA will release inflation data for July. Inflation is expected to have accelerated to 5% year on year in July from 4.7% in June‚ according to a median consensus forecast from a BDlive survey of 12 economists. Forecasts ranged between 4.7% and 5.2%.On the international front‚ the US will also release data on its core inflation late in the afternoon‚ while minutes from the last Federal open market committee meeting will be released on Wednesday night. - RDM News Wire, BDlive..

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