Canadian Dollar to South African Rand (CAD/ZAR) Exchange Rate Awaits Data
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Both currencies are at present trading in between political tensions; the Canadian Dollar faces volatility amid geopolitical tensions following the downing of Malaysian Airlines flight MH17. Conversely the Rand is still struggling amid ongoing internal political tensions regarding the recent work stoppages.
As Canada places sanctions against Russia, the South African economy tries to tidy the conclusion of the strike that is causing disagreements still amongst employers and employees.
President for Canada Stephen Harper stated: ‘In the wake of continued aggression by Russia, which includes the ongoing supply of logistical support and weapons systems to agents of the Putin regime in Eastern Ukraine. Canada is announcing its intent to once again increase economic and political pressure, in the coming days by imposing additional sanctions on the regime and those closest to it.’
The Rand conversely, could be influenced by Thursday’s South African Foreign Exchange Reserves figures followed by Manufacturing Production data.
Manufacturing production figures are expected to dip to -3.7% in June year-on-year, from the former -1.09% in May.
Following a year of strikes, the South African economy is fragile and figures will reflect this in the coming months. However, as the National Union of Metalworkers of South Africa (NUMSA) strikers return to work, some employers unions such as the National Employers Association of South Africa (NEASA) have locked out up to 80,000 NUMSA members attempting to return to work.
NEASA claim that 10% raises are not feasible, and instead will only offer 7% despite contracts already being signed.
NEASA stated: ‘Unemployment is South Africa’s biggest problem. We said we must reduce the entry level wage on the lowest level by 50%. It is drastic. If you reduce the minimum wage by 50%, that wage would have been on par with the second most expensive industry- that is the reality.’
However as debates rise regarding the legality of the lock outs, NEASA continue that they may have to abide by decisions made.
‘If the Minister makes the decision binding, then of course, that agreement is technically applicable to us and I can’t have the lock-out any more. But between the Minister doing that and now is a long road.’
Friday will allow the Canadian Dollar some movement with highly influential Net Change in Employment and Unemployment Rate figures published.
For now the ZAR to CAD exchange rate is trending at 0.1021, however Thursday’s South African data could cause the Rand to dip further, whilst the Canadian Dollar will be subject to fluctuation from its own data on Friday.