Mon, 22 Jul 2019

Can he tackle Eskom? Rand looks to Ramaphosa's SONA

20 Jun 2019, 16:13 GMT+10

All eyes will be on President Cyril Ramaphosa tonight as he outlines his State of the Nation Address (SONA) and his efforts to tackle Eskom, unemployment, growth and land reform.

"We expect ongoing volatility today, especially during SONA tonight," said Peregrine Treasury Solutions's Bianca Botes, adding that the rand had firmed in overnight trade.

"Technical levels don't mean much in this fundamental-driven environment, however analysts are quite skeptical regarding the current strength's sustainability."

The rand strengthened by more than 1% leading up to the Federal Reserve's announcement that it would keep interest rates on hold at 2.5% last night.

"[This] was in line with expectations, but the Fed noted that a rate cut as steep as 0.5% could be on the cards towards the end of the year, its most dovish stance in over a decade," she said.

The rand continued its rally in the overnight session, starting today at R14.32/$, R16.12/€ and R18.16/Pound .

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