USDZAR Higher Following Balance of Trade Report

The South African Rand stands at the time of writing as the biggest loser amongst emerging markets currencies today with losses of 1.56%
Jameel Ahmad

Open your FXTM account today

Rand stands as biggest EM loser following balance of trade report

The South African Rand stands at the time of writing as the biggest loser amongst emerging markets currencies today with losses of 1.56% after South Africa’s latest balance of trade report unexpectedly showed slowing export growth.

The recently-announced trade balance data for September has essentially resumed selling pressure on the Rand. The market is not pleased with the news that export growth fell by 2.6% month-on-month, with the essential factor to consider that slowing export growth at a time where the domestic economy is in a technical recession is never a positive sign for any global economy.

Figures like this do suggest that external uncertainties, such as the prolonged trade tensions and warnings from respected institutions like the IMF that global growth has potentially “plateaued” are a problem for emerging markets in particular.

Overall, I wouldn’t read too much into a one-off data release, but investors would be mindful to monitor the upcoming economic releases from South Africa for validation behind why exactly the Finance Minister downgraded the South African economic growth outlook so sharply from 1.6% to 0.7%.

If further economic releases from South Africa provide an explanation to why the growth outlook for the country was sharply revised lower during the medium-term budget statement one week ago, it does risk weighing further selling momentum on the Rand.

One factor that is also not helping the Rand over the near-term is the news of the Dollar edging to further 2018 highs at the time of writing. Dollar strength remains as a major challenge to emerging markets.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US