This week is relatively quiet on the economic calendar once again, with no major announcements expected. With that said, it provides a good opportunity to take a look at where the market is currently trading.
The rand has strengthened against the US dollar, with USD/ZAR trading near its strongest levels of the past 30 days, having ranged between 16.19 and 16.58. The euro has also weakened against the US dollar in recent weeks, allowing the rand to strengthen against the euro, with EUR/ZAR now trading at its strongest level in the past 12 months. Turning to the swap market, both the 2-year and 3-year swaps are currently trading near their lowest levels of the past week, despite the market still pricing in atleast one rate hike.