Peregrine Treasury Solutions

Rand reaction to GDP figures

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The ZAR has remained fairly flat leading up to and post today’s GDP data release, seeing a move from R12.97 to R12.94 against the US dollar. The subdued response is twofold: firstly, even though the figures are slightly better than expected, a positive outcome has been priced in. Secondly, there is massive event risk in terms of local politics with the DA looking to pass a motion for an early election, while the EFF with numerous other opposition parties brought an application to the constitutional court for the impeachment of President Zuma. 

The fact that South Africa is no longer in a recession although good news seems to be overshadowed by the local fundamentals. 

 

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