Free Trial
NATURAL GAS

European Gas Has Fortuitous Winter

LNG

Brunsbuettal FSRU Arrives

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Fallout From Phala Phala Scandal Weighs On Rand, Despite Firmer Stocks & Precious Metals

ZAR

Domestic political turmoil weighs on the Rand this morning, rendering it the worst EMEA performer. USD/ZAR trades at ZAR17.3210, up 1,180 pips on the day. A clean break above trendline support-turned-resistance at ZAR17.3700 would expose the 38.2% retracement of the Oct 13 - Nov 30 sell-off/Nov 17 high of ZAR17.5411/17.5553. Conversely, bears look for a pullback under Nov 30 low of ZAR16.898.

  • The reaction to a better than expected Absa Manufacturing PMI reading was negligible. Expansion in the sector accelerated last month as the index improved to 52.6 from to breakeven 50.0 recorded in October, beating the 50.5 consensus forecast.
  • The aggregate BBG Commodity Index sits 0.25% higher on the day, albeit its has trimmed some of its earlier advance. The precious metals subindex has surged nearly 2%, approaching multi-month highs/200-DMA, ahead of the release of U.S. PCE data.
  • South Africa's 10-year inflation breakeven rate soared to three-week highs today, reaching the peak of 6.63% before easing off to 6.54% where it sits at typing.
  • FTSE/JSE Africa All Share Index has resumed its rally and is poised to enter technical bull market, last trading ~1.1% higher on the session and ~21.7% above the September low. The Top40 Index has already risen >20% from the September low come yesterday's close.
205 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Domestic political turmoil weighs on the Rand this morning, rendering it the worst EMEA performer. USD/ZAR trades at ZAR17.3210, up 1,180 pips on the day. A clean break above trendline support-turned-resistance at ZAR17.3700 would expose the 38.2% retracement of the Oct 13 - Nov 30 sell-off/Nov 17 high of ZAR17.5411/17.5553. Conversely, bears look for a pullback under Nov 30 low of ZAR16.898.

  • The reaction to a better than expected Absa Manufacturing PMI reading was negligible. Expansion in the sector accelerated last month as the index improved to 52.6 from to breakeven 50.0 recorded in October, beating the 50.5 consensus forecast.
  • The aggregate BBG Commodity Index sits 0.25% higher on the day, albeit its has trimmed some of its earlier advance. The precious metals subindex has surged nearly 2%, approaching multi-month highs/200-DMA, ahead of the release of U.S. PCE data.
  • South Africa's 10-year inflation breakeven rate soared to three-week highs today, reaching the peak of 6.63% before easing off to 6.54% where it sits at typing.
  • FTSE/JSE Africa All Share Index has resumed its rally and is poised to enter technical bull market, last trading ~1.1% higher on the session and ~21.7% above the September low. The Top40 Index has already risen >20% from the September low come yesterday's close.