Rand softer as market waits for new catalysts

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There are few major events on Wednesday to give the rand its direction, with focus on Thursday's European Central Bank policy announcement

There are few major events on Wednesday to give the rand its direction, so focus is on Thursday's European Central Bank policy announcementThe rand was slightly softer against major global currencies on Wednesday morning, with markets treading water pending fresh catalysts.

Traders are keeping an eye on the US-China trade talks, while the European Central Bank’s interest rate announcement on Thursday could also give the market some direction.At 9.30am the rand was 0.42% weaker at R14.222/$, 0.33% softer at R16.0692/€, while remaining flat at R18.6743/£. The euro was flat at $1.1298.SA’s GDP growth in 2018 beat expectations, with the economy expanding 0.8% during the year, slightly better than the 0.7% forecast by the Reserve Bank.

This was positive, but still a tepid rate of growth, said Standard Bank currency trader Warrick Butler. Although there was little to give the market direction on Wednesday, there seemed to be some momentum in favour of the dollar, he said.

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