The South African rand shuffled sideways with a bullish bias as traders were fixated on data from the US, with the CPI release expected to shape guidance on policy expectations according to NKC Research.
PCE inflation rose 0.6 percent m-o-m, in line with market expectations. Meanwhile, US consumer spirits deflated in May as inflation expectations hit a decade high amid the resurgent economy and encouraging vaccine campaign.
After improving 11.5ppts between February and April, the University of Michigan’s consumer sentiment index fell to 82.9 in May. While long run US inflation forecasts over the next five to 10 years ticked up from 2.7 percent in April to 3.0 percent in May, expectations remain well-anchored and historically tame compared to previous inflationary episodes.
At the close of local trade, the rand quoted 0.08 percent stronger, at R13.77/$, after trading in range of R13.73/$ to R13.88/$. The rand traded flat overnight. The expected range of the rand against the dollar today is R13.70/$ to R13.90/$.
South African bourse
The JSE All Share (+0.92 percent) ended in positive territory on Friday, thanks to gains in large industrial (+1.95 percent) and technology (+1.89 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.48 percent) climbed higher.
Brent crude oil
The Brent oil price inched firmer at the end of last week – but failed to breach the psychological $70-level – as investors remained upbeat about the prospects of higher global demand. At the close of local trade, benchmark Brent crude futures quoted 0.29 percent stronger, at $69.68pb. Crude prices traded firmer during Asian trade this morning.
BUSINESS REPORT ONLINE