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Euro Rand Exchange Rate Trends Tightly as Greek Debt Concerns remain Dominant

The Euro has lost out against the Rand today, although future movement is predicted to show a sharp reversal in the current EUR ZAR losses.

  • EUR ZAR rate dips to 14.33 – ZAR EUR trends at 0.06
  • Euro losses seen as Spanish industrial production slows – Greek debt remains pressing issue
  • Rand influenced by mixed metal costs today – Tension mounts ahead of Zuma’s SONA
  • Euro rally possible on Thursday’s German trade stats – Rand slump forecast on production data

The Rand has been able to advance marginally against the Euro today, though it could slump considerably on Thursday’s pessimistically-predicted mining figures.

Euro Rand Exchange Rate Losses seen as Greek Debt Crisis Reaches Meltdown Point

The Euro has fallen by around -0.3% against the Rand today, following further signs of trouble in Greece over its mountain of debt to other EU nations.

While German creditors have been stubborn about easing the pressure on the cash-strapped Greek economy, European Parliament Vice President and MEP Dimitris Papadimoulis has harked back to the mass uncertainty of mid-2015’s ‘Grexit’ situation, stating that;

‘All sides need to make the necessary compromises in order to find a compromise solution. It is not good for the European Union to relive the summer of 2015’.

Other Eurozone news today has failed to support the Euro, with Spanish industrial in December slowing on the year from 2.8% to 1.9%, against forecasts of a rise to 2.9%.

Rand Investors Uneasy ahead of Key Zuma Speech

The Rand has risen against the Euro today, though all signs point towards incoming turbulence for the ZAR EUR exchange rate.

While recent metal prices have shown a rise in the cost of gold but fall in the worth of platinum and copper, a greater focus has been placed on President Jacob Zuma’s State of the Nation Address (SONA).

This has been preceded by the deployment of soldiers in a bid to maintain order, which suggests that Zuma will not be satisfying everyone in his own African National Congress (ANC) party or in the rival Democratic Alliance (DA).

Future EUR ZAR Forecast: German Trade Balance Incoming along with Zuma’s National Address

The Euro could well rebound against the South African Rand in the near-term, given forecasts for upcoming Eurozone and South African data.

In the Eurozone, the big news on Thursday will be Germany’s December trade balance, which previously showed a surplus figure of 22.6bn.

As well as pessimistically-predicted South African mining and manufacturing production results for December being due on Thursday, Zuma is also expected to make his SONA speech.

This could provoke division among Rand investors, given his reputation for corruption and dubious financial decisions as President.

Broadly speaking, the 2017 SONA is forecast to show a greater lean towards empowering black citizens in the post-apartheid era, with required minimum levels of black ownership of mining operations and minimum government spending brackets on businesses being seen among other wishes on the ANC’s list.

Current EUR ZAR Interbank Exchange Rates

At the time of writing, the Euro South African Rand (EUR ZAR) exchange rate was trending in the region of 14.33 and the South African Rand Euro (ZAR EUR) exchange rate was trending in the region of 0.06 today.