Thursday saw the South African rand advance in value against the U.S. dollar, reversing three consecutive trading sessions of losses as propelled by commentary suggesting central bank intervention is likely in the U.S. and the euro zone, Bloomberg reports.
The currency of the largest economic system on the African continent capitalized on indications noting economy-spurring techniques are a possibility in the U.S., where Fed vice chair Janet Yellen said in New York on Wednesday that preserving low interest rates is perfectly fine while the world's largest economy recovers.
"We must bear in mind that the interest rates scenarios globally are still pretty much in play, low interest rates probably still will remain in places like U.S and Europe," trader Ion de Vleeschauwer with Bidvest Bank told Reuters.
Executive board member Benoit Coeure with the European Central Bank said on Wednesday that purchasing debt is likely to resume at the institution he serves.
Italy, one of the euro zone nations working to control bond yields as the sovereign debt scourge tightens around its banks and public finances, is preparing for a debt auction, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.