The rand was firmer in early morning trade on Thursday supported by a stronger euro ahead of the local current account data later in the day.

At 9.21am the rand was bid at 7.7767 to the dollar from 7.7940 at its previous close. It was bid at 11.1095 to the euro from its previous close of 11.1100 and was at 12.6750 against sterling from 12.6617.

The euro was bid at $1.4290 from $1.4261 overnight.

Said RMB analyst John Cairns in a morning report: "Wall Street finished down for the fourth day in a row last as employment data suggested the official non-farm payroll/unemployment data tomorrow might be weaker than previously expected."

Cairns said this left risky currencies drifting off their best levels - most trading at rates equivalent to USD/ZAR7.90 - 8.00.

Cairns noted that the USD/ZAR though had bucked the trend, pushing back to 7.80 after topping at 7.92.

"That gold is surging clearly helps, so too the news that an exchange control application associated with the Bharti-MTN deal has been submitted.

"We're set for another positive at mid-day; we look for the 2Q09 current account deficit to be reported at 3.8 percent of GDP (an annualised 89 billion rand), well down from the 7.0 percent in 1Q09."

The consensus expectation is for a 4.3 percent figure.

"It appears unlikely though that the ZAR will really be able to make much ground on its own and if the infamous 7.76 is going to be broken, we will probably need the ECB meeting (no move in rates expected but let's wait and hear what they say) or the US non-manufacturing ISM survey figure to lead to further USD weakness.

"Event risk doesn't end there as Friday sees the start of the G20 meeting and also the release of the ever-important US non-farm payroll data. Import orders remain very strong at 7.70. Event risk is high but I'm inclined to think we end the week above 7.76," said Cairns.

He called the rand in a range of 7.74 - 8.90 for the day.

"The rand is considerably firmer this morning on a combination of factors," a local trader said.

"The press release yesterday on the MTN/Bharti deal gave the rand a positive move and it gained support on the back of that. Also, the euro has rebounded against the dollar and that pushed the rand firmer.

"We are still well within range and that's 7.72-7.92," he said.

"We have the current account figures today, looks like those will be better than previously. I doubt that the rand will get below 7.70-7.72. For the day, we should remain in a range of 7.72-7.84," he added.

Dow Jones Newswires reported that the euro's movements are narrow so far on Thursday, ahead of the European Central Bank's meeting, although RBS sees scope for a bit more weakness against the yen. The UK pound is also barely changed against major rivals.

"Commitment to trades is horrible, and trading has become very technical and short-term," said Alan Ruskin, head of international strategy at RBS.

The yen recently got a boost after the victory of a new political party to lead Japan's government, the Democratic Party of Japan.

"There is a general consensus that the new ruling party might do something different," said Hidetoshi Yanagihara, a currency strategist at Mizuho Corporate Bank in New York. "It seems like the Japanese economy will pick up in the near term."

Meanwhile, recent eurozone data have topped expectations, lifting demand for the euro. This may have led to some positioning Wednesday ahead of the European Central Bank meeting Thursday, said Yanagihara.

Economists are expecting the European Central Bank to keep interest rates, as well as its additional policy measures, unchanged yet again at its meeting in the week ahead, staying in wait-and-see mode amid growing signs that the eurozone economy is emerging from recession.

Bond players buy into weakness

Bonds were marginally firmer in early trade on Thursday as some investors continue to look to buy into weakness.

However, sentiment on the whole remains dull in the face of one of the busiest issuance weeks in recent memory.

By 8.55am the short-term government R154 bond was bid at 7.424 percent from a previous close of 7.450 percent. The medium-term R157 was at 8.190 percent from 8.230 percent, while the long-term R186 was bid at 8.810 percent from 8.830 percent before.

I-Net Bridge

The Malema factor ANCYL leader Julius Malema has become one of the most feared and most powerful figures in the ANC.

End of cutting cycle? Economists are doubtful whether the latest verdict of the MPC means the end of rate cuts.

Worst pension fund named The worst performing pension fund was named by the Pension Fund Adjudicator.