The South African rand gained traction against the USD this Thursday as a weaker dollar and broad-based commodity gains supported the Emerging Market (EM) currency. South African current account for Q3 (see economic calendar below) improved significantly but remains below positive territory. Overall, a net positive for the rand but the primary driver for this week has been US specific factors. Prior to the US open, jobless claims data missed expectations but stayed within recent ranges. No real surprises leave tomorrow’s Non-Farm Payroll (NFP) report under the spotlight. Barring the headline figure and unemployment, softening average earnings will be closely monitored to see whether or not this trend continues.
