However, should the ECB expand its QE program – which appears increasingly likely – and in so doing, cause another round of euro depreciation, this could be to the detriment of our exporters. However, in this case the impact on the rand might actually be secondary to the financial market volatility that these spillovers might create.
A week from now the FOMC will emerge from their penultimate meeting of the year and may take the decision that will end months of speculation and set the wheels of normalisation in process.