• Fin24's biz quiz

    Test your business news in 30 seconds with this Fin24 quiz.

  • Inside Labour

    Brexit should send warning signals to worker organisations everywhere, says Terry Bell.

  • Racial redress

    The next adult generation is at risk of being polarised on the basis of skin colour, says Solly Moeng.

All data is delayed
Loading...
See More

Rand slides further on weak US jobs data

Jul 06 2012 17:46
I-Net Bridge

Johannesburg – The rand was under-pressure‚ tracking the euro weaker in afternoon trade‚ in the wake of weak US jobs data and growing uncertainty lingering over Europe.

US non-farm payrolls came in short of market expectations at 80 000 new jobs in June‚ short of the estimated 100‚000‚ pointing to further weakness in the world’s largest economy.

The poor data came just after similar disappointing data on the US manufacturing and services sectors.

At 15:55‚ the rand was bid at R8.2668 to the dollar from its previous close of R8.1347. It was bid at R10.1690 to the euro from its previous close of R10.0690 and at R12.8066 against sterling from R12.6167 before.

The euro was bid at $1.2307 from its previous close of $1.383.

“The US data fell short of expectations. We have been tracking the euro and it seems it will be much of the same into next week‚” a local trader said.

Why has the soft jobs report failed to hurt the dollar today? Mizuho's Neil Jones argued the report wasn't weak enough to launch QE3‚ Dow Jones Newswires reported.

More importantly‚ investors may perceive the weak report as an addition to the broader backdrop of a global slowdown - in that case‚ the dollar is favoured as a haven currency. Jones said the jobs reading prompted him to increase short bets on the euro versus the dollar. "The euro under-perform on signs of more-sluggish global growth given the eurozone will rely on external demand to stand any chance of revival." Jones bets the euro will drop to at least $1.15 before the year's end.

rand  |  dollar  |  euro  |  currencies

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote

Loading...