{"id":13100,"date":"2012-08-02T13:55:27","date_gmt":"2012-08-02T11:55:27","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/s-africa-rand-cautiously-firm-before-ecb-bonds-down\/"},"modified":"2012-08-02T13:55:27","modified_gmt":"2012-08-02T11:55:27","slug":"s-africa-rand-cautiously-firm-before-ecb-bonds-down","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-rand-cautiously-firm-before-ecb-bonds-down\/","title":{"rendered":"S.Africa rand cautiously firm before ECB, bonds down"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Rand breaks through 8.30 overnight, 8.50 in line<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Gov&#8217;t resuscitates bond switching program<\/p>\n<p><span><\/span><\/p>\n<p>* July vehicle sales data at 0900 GMT<\/p>\n<p><span><\/span><\/p>\n<p>JOHANNESBURG, Aug 2 (Reuters) &#8211; The South African rand<br \/>\nfirmed against the dollar on Thursday on hopes the European<br \/>\nCentral Bank would announce further monetary stimulus to support<br \/>\nailing euro zone economies at a policy meeting later in the<br \/>\nsession.<\/p>\n<p><span><\/span><\/p>\n<p>However, investors were expected to tread carefully and not<br \/>\ntake big positions ahead of the meeting.<\/p>\n<p><span><\/span><\/p>\n<p>The rand was up 0.26 percent to the dollar at<br \/>\n8.3280 by 0632 GMT, compared to its previous 8.3496 close in New<br \/>\nYork on Wednesday. It shot through the 8.30 support barrier<br \/>\nafter the U.S. Federal Reserve soured investor sentiment by not<br \/>\nannouncing monetary easing on Wednesday.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Globally, the focus is now on the ECB, with markets pricing<br \/>\nin some easing action, but there is the potential for<br \/>\ndisappointment. So we expect players to remain cautious ahead of<br \/>\nthe meeting,&#8221; said Christopher Shiells of Informa Global<br \/>\nMarkets.<\/p>\n<p><span><\/span><\/p>\n<p>If the ECB does not deliver as expected, the rand is likely<br \/>\nto tumble to last week&#8217;s 8.50 levels. A positive outcome could<br \/>\ntake the rand back to 8.15 and 8.11 resistance on the prospect<br \/>\nof cheap money flooding emerging markets.<\/p>\n<p><span><\/span><\/p>\n<p>Government bonds were weaker especially in the longer end in<br \/>\nanticipation of a switching auction where Treasury will swap 2.6<br \/>\nbillion rand of paper maturing in two years for the<br \/>\n2026 issue.<\/p>\n<p><span><\/span><\/p>\n<p>Yields rose 4.5 basis points on the 2026 bond to 7.395 as<br \/>\nmore paper was likely to go into that part of the yield curve.<br \/>\nThe 2015 yield climbed 3.5 basis points to 5.555<br \/>\npercent. This will be the first switch auction since June 28.<\/p>\n<p><span><\/span><\/p>\n<p>July vehicle sales data is due at 0900 GMT and may deliver<br \/>\nsome positive news to the market after recent numbers raised<br \/>\nworries about consumer spending.<\/p>\n<p> (Reporting by Xola Potelwa)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Rand breaks through 8.30 overnight, 8.50 in line * Gov&#8217;t resuscitates bond switching program * July vehicle sales data at 0900 GMT JOHANNESBURG, Aug 2 (Reuters) &#8211; The South African rand firmed against the dollar on Thursday on hopes the European Central Bank would announce further monetary stimulus to support ailing euro zone economies [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-13100","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=13100"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13100\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}